U.S. Treasury Intervenes in Argentine Peso Market to Bolster Milei’s Economic Reforms
In an unprecedented move, the U.S. Treasury has directly purchased Argentine pesos to stabilize the nation's volatile currency market. Treasury Secretary Scott Bessent framed the October 9 intervention as a strategic investment in Argentina's economic future, citing the peso's undervaluation.
The action marks a historic departure from typical U.S. currency policy, where interventions are usually reserved for systemic global financial risks. This bold step signals strong confidence in President Javier Milei's aggressive reform agenda, which includes austerity measures and inflation control efforts.
Argentina's economy has been mired in crisis, with annual inflation exceeding 100% and mounting debt burdens creating severe hardship. The Treasury's intervention provides crucial support as the administration attempts to attract foreign investment and implement structural reforms.
