Argentina extends the payment term of the currency swap with the People’s Republic of China to one year

Photo: Wikimedia Commons.

According to a report by Swissinfo, as part of negotiations for a $20 billion agreement with the International Monetary Fund (IMF), the Republic of Argentina decided to extend the repayment period of its currency swap with the People’s Republic of China to one year.

It was noted that the country, led by Javier Milei, was due to begin repaying the bilateral agreement in the last month of the first half of 2025, with full repayment scheduled for June 2026. This repayment could have affected the gross international reserves of the Central Bank of the Argentine Republic (BCRA).

Regarding the new arrangement, the BCRA stated in a communiqué that, together with the People’s Bank of China (PBCO), they agreed to a new one-year term for the $5 billion swap agreement, equivalent to 35 billion yuan.

The Argentine institution also noted that this new deal would help reduce risks during the transition toward a more consistent and sustainable monetary regime, in the context of an internationally challenging environment for external capital flows.

This announcement comes shortly before the possible launch of a new program between the South American country and the IMF, discussed on Tuesday, through which a $20 billion loan agreement could be established. According to the IMF’s executive director, the program is still under review.

This renewal follows comments by Mauricio Claver-Carone, a U.S. diplomat, who claimed that the currency swap between China and Argentina represented a form of extortion by the Asian country, and urged the reduction of such financial ties.

In response, on Tuesday, Lin Jian, spokesperson for China’s Ministry of Foreign Affairs, called on the United States to change its perspective and focus on strategies to support the development of Latin American and Caribbean countries. He also noted that the currency swap between his country and Argentina has supported the South American nation’s economy, helping stabilize its finances.

In a related development, a statement from Washington announced that U.S. Treasury Secretary Scott K.H. Bessent will visit Argentina’s capital to support the economic reforms proposed by Javier Milei’s administration.

Last but not least, several media outlets in the South American country have suggested that the visit may be part of a broader strategy by the U.S. government, which is reportedly considering offering a direct line of financing to Argentina’s government.

Main Source:

Argentina extiende un año el plazo del pago de canje de monedas con China – SWI

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