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@Brad_Setser: "Traders estimated that Secret...

@Brad_Setser
44 views Oct 21, 2025
1
"Traders estimated that Secretary Scott Bessent’s Treasury sold more than US$200 million (of dollars) during the trading session Friday, with roughly half coming in the final 10 minutes"

Total US purchases of pesos last week must be above $300m, perhaps approaching $500m?

1/
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The US of course hasn't disclosed the amount of direct peso purchases it has done -- and such purchases come on top of the $20b committed in a credit line to Argentina's central bank. h/t @sobel_mark

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batimes.com.ar/news/economy/f…
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Two things though are clear --

a) Either the US or the BCRA will have buy a lot more pesos this week to keep the peso broadly stable ahead of the election ...
b) This is an incredibly risky use of the Treasury's Exchange Stabilization Fund

3/3

nytimes.com/2025/10/17/us/…
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hearing that cumulative US purchases in through the troubled peso purchases program may already top $600m (more than I expected) ...

attention: @sobel_mark
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