The Argentine peso fell on Monday as investors continued to bet that authorities will not be able to maintain the trade band for the government-backed currency.
The currency’s weakness comes despite ongoing US financial assistance. Argentina’s central bank signed an agreement with the US Treasury on Monday to create a $20 billion swap line, the bank said in a statement. That gives Argentina access to much-needed dollars, but analysts say it may not be enough to end the peso currency crisis.
US Treasury Secretary Scott Bessent has pledged to support the currency ahead of congressional elections scheduled for October 26. “We have the ability to act flexibly and forcefully to stabilize Argentina,” Bessent said Friday. The Treasury has bought pesos on the open market at least twice.