Core Insights - The U.S. has taken unprecedented direct intervention measures to stabilize financial markets in Argentina ahead of the crucial midterm elections for President Javier Milei's government [1][3] - The intervention is estimated to exceed $1 billion, with a significant focus on supporting the Argentine peso, which has depreciated by 21% over the past four months [1][4] Intervention Details - The U.S. Treasury, led by Secretary Bessent, has arranged a $20 billion currency swap line to enhance Argentina's dollar liquidity [3][6] - On October 22, the U.S. conducted its largest single-day dollar sale, estimated between $400 million and $500 million, to reverse the peso's five-day decline [4][6] - Estimates of the total U.S. intervention range from $1.4 billion to $1.7 billion, although official figures have not been disclosed [4][5] Market Reactions - Despite the U.S. intervention providing temporary support, the market remains cautious, with the peso still trading at the weak end of its official range [5][6] - The upcoming midterm elections are viewed as a critical political test for the Milei government, influencing public support for its reform agenda [5][6] - Analysts indicate that external support may not fully alleviate investor concerns until election results clarify the government's future [6]