Argentina renews US$19 billion China currency swap, brushing off Washington’s pressure
Argentina has renewed its currency swap with China for five years, preserving a US$19 billion lifeline that Washington spent more than a year pressing it to give up. The Argentine central bank and the People’s Bank of China (PBOC) signed the extension of the 130 billion yuan line on Wednesday, a day before the existing deal was due to expire. The new term runs to 2031, two years longer than any…
Argentina has extended its US$19 billion currency swap agreement with China for an additional five years, despite intense pressure from the United States. The extension, which runs until 2031, preserves a valuable lifeline for the Argentine economy, which has been heavily reliant on the swap due to its chronic shortage of dollars.
This is the longest term renewal since the initial agreement was signed in 2009, and it provides the central bank with greater predictability in their financial tools. The swap allows Argentina to draw yuan from the People's Bank of China, with the money counted towards the country's foreign reserves but not yet spendable until a tranche is activated.
The swap has been used to finance Chinese imports, stabilize the peso during currency crises, and cover payments to the International Monetary Fund. Despite the US' pushback, Argentina has successfully negotiated the extension, with the new deal maintaining the same terms as the previous one.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written; read the original for the full account.
