Argentina and China formalize foreign money swap deal


BUENOS AIRES (Reuters) – Argentina and China have formalized the enlargement of a foreign money swap deal, permitting the South American nation to extend its depleted international foreign money reserves, the Argentine central financial institution mentioned on Sunday.

Argentina’s authorities must rebuild reserves to cowl commerce prices and future debt repayments, and extra reserves are a key goal of a significant debt cope with the Worldwide Financial Fund (IMF).

President Alberto Fernandez introduced the deal in November final 12 months and mentioned on the time it was value $5 billion.

The heads of the Argentine and Chinese language central banks “confirmed that the deal for the swap of currencies between each establishments has been activated and dedicated to deepening using (Chinese language yuan) within the Argentine market,” the central financial institution mentioned in an announcement.

China is Argentina’s second greatest commerce companion, after Brazil, and the second most essential vacation spot for Argentine exports.

“The swap includes the alternate of foreign money for reinforcement of worldwide reserves of 130 billion yuan and a particular activation of 35 billion yuan to compensate operations on the international alternate market,” the assertion mentioned.

(Reporting by Jorge Otaola; Writing by Maximilian Heath and Julia Symmes Cobb; Modifying by Daniel Wallis)