Argentina’s Central Bank and the People’s Bank of China Renewed Their Bilateral Currency Swap Agreement for Rmb130

The activated RMB35 billion tranche (about US$5 billion), first drawn in early 2023, remains in effect to support financial stability in Argentina and promote trade and investment. BCRA chief Santiago Bausili said the renewal reinforces cooperation between the institutions over 17 years since the first agreement. The swap, in place since 2009, lets Argentina access yuan for authorized transactions like import payments without using its dollar reserves, with the BCRA providing pesos and later reversing the transaction plus interest.

The activated portion can be used without additional approvals, aiding liquidity management. The renewal comes as Argentina’s government pushes a BCRA charter reform, with lawmakers expected to debate it in August. greater predictability regarding the continuity of this instrument.