At the opening of the ordinary session of the Argentine Congress, Argentine President Alberto Fernandez confirmed that the government of the People’s Republic of China agreed to extend the currency swap with Argentina to strengthen the reserves of the Central Bank of Argentina (BCRA).
Swaps or currency swaps -technically not a loan but an exchange- are a tool used by many central banks around the world to allow countries to accumulate their reserves at no cost. It is through this action that the Central Bank of the Argentine Republic (BCRA) has managed to increase total or aggregate reserves over the years. In the case of the Latin American country, it may help to strengthen reserves and to have fewer imports financed with dollars. According to the Argentine newspaper Clarín, the presidential spokeswoman, Gabriela Cerruti, announced the extension of the foreign exchange swap with the Asian country by some $3 billion. This means that the exchange of foreign currency between Argentina and the People’s Republic of China will increase to $23.5 billion.
La Nación (Argentina): Swap: el enigmático acuerdo de intercambio de monedas con China.
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Head Topics Argentina: Swap: el enigmático acuerdo de intercambio de monedas con China.