LatinNews Daily - 13 June 2024

*Argentina’s central bank (BCRA) and the People’s Bank of China (PBoC) have renewed the activated portion of their currency swap agreement, amounting to ¥35bn (some US$4.8bn), for another two years, until July 2026. This renewal will see the swap continue for 12 months, after which the BCRA will gradually reduce the activated amount over the following 12-month period, with the swap set to fully deactivate by mid-2026. The swap agreement, originally activated in 2023, has allowed Argentina to bolster its reserves without incurring direct debt, as it is a currency exchange rather than a loan. This agreement plays a vital role in Argentina’s strategy to accumulate reserves and stabilise its economy amidst intense economic challenges. The renewal of the swap agreement comes as Argentina is also aiming to negotiate a new deal with the International Monetary Fund (IMF).

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