China extends currency swap agreement with Argentina

China extends currency swap agreement with Argentina

China's central bank said on Tuesday it has extended a bilateral swap agreement with Argentina with both countries signing a 70 billion yuan ($10.37 billion) swap deal for another three years.

PUBLISHED: 15:49 BST, 18 July 2017 UPDATED: 15:49 BST, 18 July 2017

The People's Bank of China announced the extension in a statement on its website and Argentina's central bank confirmed the agreement in an e-mailed statement.

Argentina's former President Cristina Fernandez first inked a swap agreement with China in 2009 as a means of boosting dwindling reserves her government relied on to pay for energy imports and cover debt obligations.

A second agreement was signed in 2014.

The previous swaps allowed Argentina to bolster foreign reserves or pay for Chinese imports with the yuan currency.

Reserves have risen from $24.9 billion on Dec. 10, 2015, when President Mauricio Macri took office promising to end Argentina's financial isolation with a plethora of free-market reforms, to $42.27 billion as of July 13.

"The new agreement will further strengthen the relationship between the two central banks and encourage the strengthening of financial conditions to promote economic and trade development in both countries," Argentina's central bank said. ($1 = 6.7478 Chinese yuan renminbi) (Reporting by Meg Shen in Hong Kong and Jorge Otaola in Buenos Aires; Writing by Caroline Stauffer; Editing by Robert Birsel and Marguerita Choy) es un sitio web oficial del Gobierno Argentino