Argentina's Economy Minister, Luis Caputo, revealed that the country's forthcoming agreement with the International Monetary Fund will amount to $20 billion, although formal approval from the executive board could take some weeks. Caputo's announcement marks a significant development in the four-year program following extensive negotiations between the fund and President Javier Milei's administration. Despite not confirming a formal staff-level agreement, Caputo emphasized the importance of disclosing the agreed-upon amount due to recent market fluctuations and speculations.

During a conference in Buenos Aires, Caputo disclosed that he had discussions with IMF Managing Director Kristalina Georgieva, culminating in their mutual decision to unveil the $20 billion figure. This move aimed to address market uncertainties and dismiss rumors regarding IMF demands for currency devaluation. The combined financial support from the IMF, World Bank, Inter-American Development Bank, and CAF is expected to boost Argentina's central bank reserves close to $50 billion, with current reserves standing at $26.2 billion.

The impact of these developments was reflected in the rise of Argentina's dollar bonds and a positive trend in emerging markets. Nevertheless, investors remained uncertain about Milei's government's stance on the peso's exchange rate post-agreement, fueling market volatility and concerns about a potential devaluation. With the focus now turning to how much of the $20 billion Argentina will receive initially if the IMF board ratifies the agreement, the timing becomes crucial, especially since the country doesn't have to repay any principal debt to the IMF until September 2026. This aspect will influence how new funds from the lender are utilized under IMF rules.