Argentina extends multi-billion currency swap deal with China
BUENOS AIRES
People cross the street during a 24-hour strike called by workers' unions against the economic policies of President Javier Milei in Buenos Aires on April 10, 2025.
Argentina has extended a multi-billion-dollar currency swap agreement with China, despite fierce opposition to the deal in Washington.
The cash-strapped South American nation extended the $5 billion accord with Beijing for one more year, securing much-needed foreign reserves.
The deal has become yet another front in a battle between Washington and Beijing for influence in Latin America.
A serial defaulter, Argentina has struggled to get enough foreign currency to pay off international debts while keeping its own currency stable.
The deal gives Argentina access to more Chinese yuan in return for China gaining pesos and influence, as a lender of last resort.
U.S. President Donald Trump's top Latin America envoy Mauricio Claver-Carone recently described the swap agreement as "extortion" and said Washington wanted to see it ended.
The deal extension comes at a sensitive time.
Argentina is close to securing a $20 billion bailout from the International Monetary Fund.
The deal has already been tacitly approved by IMF working groups but will be considered by the board in the coming days.
China insists its own deal helps stabilize the Argentine economy.
The Argentina-China deal also comes as the U.S. Treasury announced that Secretary Scott Bessent will visit Argentina next week.
The U.S. Treasury is said to be considering its own direct financing line for Argentina.
The Treasury said Bessent would "engage with both government and private sector leaders to affirm the United States' full support for Argentina's bold economic reforms."
