Argentina, China extend currency swap deal
Central banks of Argentina and China renew US$19-billion bilateral currency swap. Leer más
Argentina and China have agreed to extend a multi-billion-dollar currency swap deal by five years, financial authorities announced on Wednesday. The 130-billion-yuan (approximately US$19 billion) agreement, which was originally signed in 2009, was set to expire in 2024.
The Central Bank of Argentina stated that the five-year extension aims to provide greater stability ahead of the upcoming 2027 presidential election. The monetary authority seeks to maintain financial stability in the country and support trade and investment between Argentina and China.
Under the agreement, a 35-billion-yuan tranche released in 2023 will remain in effect. The extension follows previous renewals of the deal every three years. Argentina's Central Bank emphasized that the longer period will enhance predictability regarding the continuity of this financial tool.
The renewal of the currency swap deal comes as Argentina struggles to secure sufficient foreign currency to pay off international debts while maintaining its own currency's stability. The agreement provides a crucial lifeline for the South American nation as it prepares for the presidential elections next year, a period often characterized by heightened financial turbulence.
This extension comes after Argentina signed a separate currency swap deal with the United States worth US$20 billion before the legislative elections in 2023. President Javier Milei had initially pledged not to engage in business with China or any communist countries during his campaign. However, he adopted a more pragmatic approach once in office, while still maintaining close ties with the United States.
China remains Argentina's second-most important trading partner, following Brazil.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
