Us Treasury Sells Dollars to Keep Peso Within Argentina Fx Band
Posted3 months agoActive3 months ago
bloomberg.comOtherstory
skepticalnegative
Debate
60/100
Currency ManipulationArgentina EconomyUs Treasury
Key topics
Currency Manipulation
Argentina Economy
Us Treasury
The US Treasury is selling dollars to keep the Argentine peso within its FX band, sparking concerns about the sustainability of Argentina's economic policies and the implications of US intervention.
Snapshot generated from the HN discussion
Discussion Activity
Moderate engagementFirst comment
13m
Peak period
6
0-1h
Avg / period
3
Comment distribution27 data points
Loading chart...
Based on 27 loaded comments
Key moments
- 01Story posted
Oct 21, 2025 at 3:22 PM EDT
3 months ago
Step 01 - 02First comment
Oct 21, 2025 at 3:35 PM EDT
13m after posting
Step 02 - 03Peak activity
6 comments in 0-1h
Hottest window of the conversation
Step 03 - 04Latest activity
Oct 22, 2025 at 7:56 AM EDT
3 months ago
Step 04
Generating AI Summary...
Analyzing up to 500 comments to identify key contributors and discussion patterns
ID: 45660404Type: storyLast synced: 11/20/2025, 8:42:02 PM
Want the full context?
Jump to the original sources
Read the primary article or dive into the live Hacker News thread when you're ready.
I don't think I've ever heard of a country doing anything like this for another country?
If we didn't do it, the peso would probably hyperinflate again and all our investments denominated in pesos would become worthless.
If we do do it, we get back all our money as long as the currency doesn't collapse in the future.
Nothing to see here.
They've got plenty.
Plus they'll print more.
Since the USD is one of the core currency crosses and is at the base layer of the financial system, raising the peso/dollar cross is effectively strengthening the currency against all other currencies.
Also, while the specific political circumstances around the pesos swap line are dubious, the US often extends dollar swap lines to other central banks. The other side of the privilege of having the world reserve currency is having the obligation to support the stability of the world financial system (although this example is more off the wall than the typical example).
If the peso rises against all other currencies, the dollar paying for it must fall against them, not as much but the dollar falls - at least relative to the movement it would experience without the purchase of pesos.
> Since the USD is one of the core currency crosses and is at the base layer of the financial system,
Abracadabra isn't an argument.
In actuality, cash will flow into equities, the rich will benefit and the average American will suffer the consequences of their vote.
But Americans have a proven track record of killing South American leaders and invading their countries.
Perhaps one day, god willing, the Chinese will be in a position to send aircraft carriers to Panama.
Things like this used to be the job of the IMF, stepping in when there were genuine crisis, in theory with experts advising or demanding policy changes to prevent further crisis.
But it seems the crisis here is all self inflicted and the bail out is politically motivated. Is the expectation that after Sunday this won’t be needed and things will stabilized or is this structural and we’ll be on the hook holding the Peso’s peg forever?
it is the bizare case of the US subsidising the ongoing takeover of Argentinas economy by outside actors
> Those efforts have been complicated by the fact that major hedge funds, including those led by friends of Mr. Bessent, stand to benefit financially from an Argentina economic lifeline. Funds at investment firms including BlackRock, Fidelity and Pimco are heavily invested in Argentina, as are investors such as Stanley Druckenmiller and Robert Citrone, both of whom worked with Mr. Bessent when he was an investor for George Soros.
1. https://archive.ph/6bWMv
Argentine peso weakens to fresh low despite US interventions
https://news.ycombinator.com/item?id=45651516
U.S. Banks Are Hunting for Collateral to Back $20B Argentina Bailout
https://news.ycombinator.com/item?id=45651516
2 more comments available on Hacker News