backstop

Milei’s radical economic changes are now more likely to get a strong U.S. backstop.

Another reason for the peso rally is the U.S. offer to backstop the overvalued currency with a $20 billion dollar swap line.

Bankers are waiting on guidance from the Treasury Department on what collateral Argentina would be able to provide for them or if Washington would plan to backstop the facility on its own, the people said.

Investors have seen the federal government as a backstop for municipal issuers when natural disasters like hurricanes or wildfires hit.

But they needed a backstop from the US, specifically in air defences, intelligence and operations, he said.