📝U.S. Support to Argentina Will Be Less Than $30 Billion: Natixis

Will Trump's intervention "work"? What exactly does it mean for

it to 'work'? And at what cost? Secretary Bessent said that 'all

options' are on the table to help Argentina contain FX

depreciation. However, we will only know the details after Milei

meets with Trump and Bessent. We already know

that the support will be significantly less than $30 bn, as

Argentina’s Foreign Affairs Minister has confirmed. Clearly, the

support from the US is having a significant signaling effect, and

if everything goes well, Argentina’s authorities will end up not

needing more US support. More concrete measures to defend

the peso include intervention by the CB, the pausing of taxes on

the agricultural exports for up to $7 bn, and the tightening of

rules to prevent brokers with outstanding peso-denominated

repo positions from purchasing excessive amounts of dollar

instruments. While our certainty is within a wide confidence

interval, we believe that Milei's LLA will perform well enough

to control one third of Congress, which is enough to veto the

opposition's fiscally irresponsible policies. - Natixis