The U.S. Treasury is actively purchasing Argentine pesos through major banks and a Federal Reserve swap facility to stabilize the currency ahead of Argentina's October 26 election. This intervention involves Citigroup, JPMorgan Chase, Goldman Sachs, Bank of America, and Banco Santander as counterparties in a $20 billion short-term liquidity program, with the possibility of expanding to $40 billion.
The initiative aims to absorb dollar demand and mitigate panic selling of the peso. However, analysts caution that while this move may provide temporary relief, it does not address the underlying structural issues affecting Argentina's economy.
U.S. Treasury Intervenes to Stabilize Argentine Peso Before Election
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