The $20 billion swap introduced by Bessent (not on US Treasury web site so far as I can inform) is funded out of the Change Stabilization Fund. So far as I can inform, there’s no conditionality. This transaction is qualitatively totally different from Fed swap traces with for instand ECB and BoE whereby the Fed had entry to their currencies.
Therefore, the swap is actually a mortgage from US Treasury (i.e., you and me, American taxpaers). I wish to know what’s the collateral. Hopefully, we’re not counting on the reliability of Argentina to stabilized its forex…
To date, the Treasury intervened on Friday. It’s not clear that labored to stabilize the forex.
Right here’s the Argentine peso’s worth over the past month:
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