The Minister of Economy, Sergio Massa, and the head of the Central Bank, Miguel Pesce, met on Friday with the president of the Bank of the People's Republic of China (PBC), Yi Gang, to renew the currency swap for another 3 years.
The deal was due to expire in August, but the deal was anticipated and increased to $19 billion (000 billion yuan), $130 billion more than had been signed in 1. They will reinforce the reserves.
The expansion procedure was also "initiated" from the $5 billion (000 billion yuan) of free availability to another $35 billion, the central bank said. This expansion will operate once the first tranche is exhausted, always within the package of US $ 000,5 million. They are dollars that can be used to intervene in the foreign exchange market.
"China's swap is tied to the agreement with the IMF, in no way can that negotiation be set aside," they said in the Argentine delegation.
Sergio Massa and Miguel Pesce together with the head of the Central Bank of China after the signing of the renewal of the swalp. Photo Ministry of Economy
Precisely, after the meeting with the president of the Chinese bank, Massa arrived at his hotel and immersed himself in a zoom with Washington to continue negotiations with the Monetary Fund. It was said that on June 12 part of the team will go to the United States with the illusion of new advances.
The swap includes the exchange of currencies as a reinforcement of international reserves.
By a confidentiality agreement, the interest rates applied on these loans are unknown. Before the U.S. raised them they were more expensive than loans from multilateral agencies, now they would be up to 25% cheaper.
Also present at the meeting that took place during the afternoon in Beijing, early morning in Buenos Aires, were the Argentine ambassador in Beijing, Sabino Vaca Narvaja, and the secretary of International Economic and Financial Affairs, Marco Lavagna.
The first agreement between the two central banks was established in 2009, when the president of the Central Bank in Argentina was Martín Redrado. A second agreement was signed in 2014, which was renewed in 2017 and supplemented at the end of 2018 with a supplementary agreement.
The exchange with yuan that expired in August and that now obtained an early renewal was the main reason for Massa's tour to China.
Note in development
