Deal extension allows Trump ally Argentina to borrow another $5 billion from China

Deal extension allows Trump ally Argentina to borrow another $5 billion from China

China has renewed a currency swap agreement with Argentina equivalent to $5 billion for another year, easing some pressures on Argentina’s dwindling foreign reserves and underscoring the strategic importance of the countries’ partnership despite recent criticism from the Trump administration.

The Argentine Government informed this Thursday that the Central Bank of the Argentine Republic (BCRA) and the Central Bank of the People’s Republic of China (PBOC) will renew the activated tranche of the bilateral swap agreement for $5 billion. READ ALSO: Sales in supermarkets in Argentina fall 10.2% for lower consumption With an additional period of 12 months and, “amid the desire of the Government of Javier Milei to make reserves to face the …

The agreement was revealed this Thursday through a statement from the Argentine Central Bank.

The Argentine monetary authority reported that the funds will be available until mid-2026, “allowing to reduce the risks in its transition to a consistent and sustainable monetary and exchange rate regime, in a challenging international context for external capital flows”

Faced with the draining of reserves, the Central Bank managed to agree with its Chinese pair the 12-month extension of the swap, equivalent to $5.5 billion.

Latin American Summary, April 10, 2025. In the midst of Javier Milei’s government’s desire to make reserves to face market pressure for a devaluation, the Central Bank of the Argentine Republic (BCRA) announced on Thursday the total renewal of the activated section of the swap bilateral agreement with the Bank [...] Entry Argentina. The Central Bank renewed the swap with China was first published in Latin American Summary.