China agrees US$9b currency swap with Argentina
[BUENOS AIRES] China and Argentina signed a US$9 billion currency swap deal to boost the crisis-stricken South American country's foreign currency reserves, its central bank announced Sunday.
Struggling to recover after a currency crisis earlier this year, Latin America's third largest economy sought the help of the International Monetary Fund - which approved a US$56 billion loan package.
Now, this latest agreement will "contribute to greater financial stability and also facilitate trade" between China and Argentina, according to the bank's statement.
A currency swap sees two parties agree to exchange a certain amount of foreign currency at a pre-determined rate, protecting against fluctuations.
Argentina's central bank will be able to draw on these funds in an emergency.
The agreement followed the G-20 summit in Buenos Aires, as Chinese President Xi Jinping was received by his Argentine counterpart Mauricio Macri for a state visit.
The two countries signed 30 trade and financial agreements in total.
"We are extending cooperation on economic, agricultural, financial and infrastructure issues," Mr Xi told a press conference.
After Brazil, China is Argentina's second largest trade partner.
In 2017, the relationship was firmly in Beijing's favor: China exported US$17 billion of goods to Argentina, while importing US$8 billion of goods from that country.
Beijing and Buenos Aires also agreed another currency swap in 2014, which provided US$11 billion for Argentina's depleted treasury reserves.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Indian vote body tells X to remove Modi party video targeting Muslims, opposition
Inflation-hit Argentina has a new top banknote, worth just US$10
Trade between Singapore and Asean was at S$295.6 billion in 2023
One out of every 24 New York City residents is a millionaire
Private credit faces pain from high interest rates, Moody’s says
BOE postpones Long-Term Repo Operation due to tech issues