Natasha Niebieskikwiat
07/10/2020 - 11:17
- Clarín.com
- Economy
Despite the surgical style that Beijing always has in its communications, the last letter Xi Jinping sent to Alberto Fernández clearly states a series of events.
At the request of the Argentine president, it is Xi's will to renew Argentina's so-called currency swap, a mechanism by which this country and China promised to enable currency exchange without the intervention of third currencies; in this case, the dollar, always equivalent to its relationship with the Chinese yuan.
Close to US $ 20,000 million according to the price of the yuan at all times, the two "lots" of swap that China has in this country are used to compute in the diminished reserves of the Central Bank of the Argentine Republic (BCRA), which the Wednesday they reached US $ 43,247 million. But those are not used for international trade since the yuan is not yet recognized in transactions such as the dollar, the yen, and a few others.
The one that expires on July 27 is US $ 8,500 million and has been in effect since December 27, 2015, official sources told Clarín . The first swap had been negotiated by the Cristina Kirchner administration in 2009. InThe BCRA told this newspaper that they will not comment while negotiations are underway. The other swap is US $ 10 billion (or its equivalent in yuan) was signed on December 1, 2018 and remains in effect until 2023.
"China and Argentina are integral strategic partners , " Xi begins by saying in his letter to Alberto Fernández, as this newspaper could read. He affirms that his country "strongly supports Argentine efforts to safeguard stability and development." He indicates that he has no doubts that "the Argentine side will be able to overcome temporary difficulties and resume stable, healthy and sustainable growth." And it is then that he informs Fernández that "regarding his proposal to renew the Bilateral Currency Swap Agreement and the Complementary Agreement, I have already instructed the relevant Chinese departments to speed up consultations with the Argentine side."
Xi also talks about other issues, starting with the gigantic cooperation of China with Argentina in terms of inputs to face the COVID 19 pandemic.
In the last week, 36 flights were made to China from Argentina to search 460 tons of medical materials to deal with the coronavirus. It was on private planes and Aerolineas Argentinas. As revealed by the Xinhua agency, to this must be added a maritime chapter that was unknown. There will be five cargo ships that will carry 7 million inputs . The critical point is that the national government and the provincial government of Buenos Aires have so far not reported a single word of what they have spent. Some of the Chinese material is donated and another is bought.
Fernández and Xi adopted the format of letters to communicate with each other. The Argentine wants to go to China as soon as the Argentine situation allows it. With a United States that has shown less presence here, China became the main ally. Swap renewal is a strong gesture of confidence. And both governments strengthened their ties so much that in the Presidency they debate whether or not to stamp the Argentine signature of adhesion to the initiative of "One Strip One Road" (One Belt one Road), the Chinese mega-project of investments that seeks to offer aid while simultaneously economic hegemony.
In the coming days, Ambassador Luis María Kreckler will occupy the embassy in Beijing, which until last December was in charge of Diego Guelar . Last week, Foreign Minister Felipe Solá spoke by telephone with the Minister of Commerce of the People's Republic of China, Zhong Shan, and confirmed his Argentine presence in the popular Shanghai Trade Fair at the end of the year. Solá could travel.
Last Tuesday, the Chief of Staff of the Foreign Ministry Guillermo Justo Chaves and the Secretary of International Economic Negotiations Jorge Neme received Steven Chen Shiqing , CEO of Huawei in Argentina. One of the few personal interviews that officials have allowed in the middle of the quarantine. They reportedly discussed the company's investment in the country and the eventual impact of 5G technology here. It is a highly sensitive issue for the Donald Trump government, which is waging a battle against the Asian giant in its biggest war with China over telecommunications. The meeting discussed global business competition, cybersecurity, and personal data protection.
