China clears US$6.5 billion as part of Argentina swap line deal

ARGENTINA’S central bank said on Wednesday (Oct 18) that China has cleared a currency swap line totaling a freely accessible US$6.5 billion, part of a broader deal the South American country has been using to help it defend the embattled local peso.

The agreement with China has helped Argentina increase its depleted foreign currency reserves as it undergoes a major economic crisis, with annual inflation above 130 per cent and central bank US dollar reserves hitting negative levels.

The Wednesday move in practice increases the the amount Argentina can access as part of the swap line formalised in early 2023.

“China has increased the amount and instead of US$5 billion we are getting US$6.5 billion,” Argentine President Alberto Fernandez told Radio 10 from the Asian country, where he is for an official trip. REUTERS