China may cede SDRs to Argentina

Photo: President of Argentina, Alberto Fernandez. By: Media Banco Agencia. Source: Flickr

President Alberto Fernández’ visit to the People’s Republic of China (PRC) in February 2022 brought with it a series of novelties regarding Argentina’s relations with the Asian country. The topics discussed included the signing of the Belt and Road initiative, which was not signed until March 15, despite the fact that the announcement was made in February.

The memorandum of understanding between the two governments will remain in force for three years; it will then be automatically renewed for an equal period unless terminated by either country. The MOU has several chapters, including China’s decision to provide financial support to Argentina through a possible transfer of Special Drawing Rights (SDRs); the SDRs will be channeled through a trust fund that the International Monetary Fund (IMF) promotes to help low- and middle-income countries increase their resilience to the potential balance of payments shocks and growth sustainability. It also contains sections on infrastructure investments and export capacity.

Main story:

Ámbito: China anticipa que podría ceder DEG a Argentina en caso de ser necesario.

Find out more:

El Cronista: Fuertes cambios para la economía: qué dice el acuerdo del Gobierno con China.