Milei’s financing assurances briefly lift Argentine bonds, peso

President Javier Milei said Argentina has secured financing through the end of next year and is working on longer term plans, giving a brief boost to the nation’s assets.

Milei, in his first media interview since the US offered a US$20-billion lifeline last week, said Argentina would keep its currency swap line with China even as it negotiates a financial rescue package with Washington.

He also signalled he would shuffle his Cabinet after a key congressional vote next month.   

“We have already closed the financing for ’26, we are looking to close that for ’27,” Milei told A24 television Tuesday morning. Asked if Argentina would abandon the China swap as part of its deal with the United States, the president said: “False.”

Argentina’s dollar bonds rose as Milei spoke, with notes maturing in 2035 jumping as much as 1.4 cents before erasing most of the gains to trade back at 55 cents on the dollar, according to indicative pricing data compiled by Bloomberg. 

The positive move in the peso was also short-lived, as investors still expect more details about the conditions of the US financing. The currency was 0.7 percent weaker, trading at 1,370 pesos per dollar at 12.25pm local time.

“Milei’s remarks generated some initial optimism, as securing external financing is a cornerstone of his programme to roll over upcoming debt maturities,” said Matias Montes, a strategist at EMFI. “However, the market remains understandably cautious, as such comments without concrete details on the funding sources or structure tend to lack credibility.”

Investors are watching closely for any concrete details from the United States, or course corrections by Milei, after US Treasury Secretary Scott Bessent unveiled plans to extend Argentina a currency swap line last Wednesday. The announcement helped the libertarian leader halt a run on the peso that began earlier in September after his party lost a provincial election by a landslide, threatening to knock his business-friendly agenda off course heading into national midterms on October 26.

“In principle, there will be changes” to the Cabinet because some members are running for Congress, Milei said on Tuesday. “I have to calibrate to maintain balance in the Cabinet.”

In another potentially positive sign for investors, former president Mauricio Macri confirmed he met with Milei and his Cabinet Chief Guillermo Francos on Sunday. “It’s good to have resumed the dialogue after more than a year,” Macri said in a post on X, adding that he shared his views on Argentina’s current economic situation.