• US Treasury Secretary Scott Bessent pledges to "do what is needed" to support Argentina, a move that triggered a sharp rally in the nation's assets.
  • Potential support measures include currency swap lines or direct purchases of Argentine debt, echoing actions taken during the 1995 Mexican peso crisis.
  • The show of support comes as President Javier Milei's government faces a critical test in upcoming midterm elections amid economic pressures.

US Treasury Secretary Scott Bessent has publicly declared that the United States is "ready to do what is needed" to support Argentina, describing the South American nation as a "systemically important US ally." The statement, made on September 22, 2025, provided a jolt of confidence to markets that have been rattled by Argentina's persistent financial challenges.

The announcement fueled an immediate rally across Argentine markets. Dollar bonds due in 2035 jumped by nearly eight cents on the dollar, while the peso strengthened by approximately 3% against the US dollar. The benchmark S&P Merval stock index surged more than 6% in afternoon trading as investors digested the potential for significant external backing.

According to people familiar with internal discussions, the options under consideration by the US Treasury are substantial and somewhat unconventional. These include establishing currency swap lines, authorizing direct Treasury purchases of Argentine currency, or buying the nation's dollar-denominated government debt. Such actions could potentially draw on the Treasury's Exchange Stabilization Fund, a tool last used in a similar regional context during the 1995 Mexican peso crisis when the US provided a $20 billion loan.

This pledge of support arrives at a precarious moment for President Javier Milei's administration. The Central Bank of Argentina was forced to sell $1.1 billion in reserves last week to defend the peso, highlighting the intense pressure on the country's balance of payments. The government has also temporarily halted crop export tariffs in an effort to attract more foreign currency.

Secretary Bessent, who was only recently appointed, emphasized the strategic importance of Argentina and specifically pointed to opportunities for private investment in the country's vast copper mining sector. Argentina holds an estimated 75 million tonnes of copper reserves, the sixth-largest globally, a resource seen as critical for the global green transition.

Efforts to reach a spokesperson for the Argentine Ministry of Economy, led by Minister Luis Caputo, for additional comment were not immediately successful. The US Treasury declined to provide further specifics on the timing or structure of any potential financial package.

The show of support from the US Treasury builds upon the $20 billion stabilization program Argentina agreed to with the International Monetary Fund earlier this year. However, the nation's financial stability faces a near-term political test with midterm elections scheduled for October 26. These elections are widely viewed as a referendum on Milei's austere, market-oriented reforms, which have sparked domestic protests even as they seek to attract foreign capital.

While the US backing is intended to calm markets and buy time for Milei's economic reforms to take hold, some analysts caution that lasting recovery will depend on Argentina's ability to implement structural changes and maintain political stability. For now, however, the powerful signal from Washington has provided a crucial, if temporary, respite for the embattled economy.