"The Central Bank of the Argentinian Republic (BCRA) said it has signed a $20bn exchange rate stabilisation agreement with the United States Treasury Department, six days ahead of a key midterm election. The central bank's statement on Monday said the agreement sets forth terms for bilateral currency swap operations between the US and Argentina, but it provided no technical details."
"Such operations will allow the BCRA to expand its set of monetary and exchange rate policy instruments, including the liquidity of its international reserves. The Argentinian peso closed at a record low, down 1.7 percent on the day to end at 1,475 per dollar. The BCRA said the pact was part of a comprehensive strategy to enhance its ability to respond to foreign exchange and capital markets volatility."
"The US Treasury did not immediately respond to a request for details on the new swap line and has not issued its own statement about the arrangement. US Secretary of the Treasury Scott Bessent said last week that the arrangement would be backed by International Monetary Fund Special Drawing Rights held in the Treasury's Exchange Stabilization Fund that will be converted to dollars."
BCRA signed a $20bn exchange rate stabilisation agreement with the US Treasury to set terms for bilateral currency swap operations; no technical details were provided. Such operations will expand BCRA monetary and exchange rate instruments and increase international reserves liquidity. The Argentinian peso fell to a record low of 1,475 per dollar, down 1.7% that day. The US Treasury had not issued a statement. US Secretary of the Treasury Scott Bessent said the arrangement would be backed by IMF Special Drawing Rights in the Treasury's Exchange Stabilization Fund converted to dollars, and the US would not add conditions beyond continued fiscal austerity and reforms. Economy Minister Luis Caputo hoped the framework would be finalised before the October 26 midterm vote.
Read at www.aljazeera.com
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