Massa and Pesce seek to renew the swap with China for 3 years and strengthen reserves with US$ 5 billion

The economic cabinet delegation accompanying Sergio Massa during his visit to China scheduled for this Friday, June 2, a key meeting to renew the currency swap for another 3 years. Although the swap would expire in August, the team coordinated by the Minister of economy was anticipated and will seek to extend the renewal to strengthen the reserves of the Central Bank with an injection that oscillates between $3 billion and $5 billion.

At 14,000 from Beijing, Miguel Pesce will meet with the president of the Bank of the People’s Republic of China (PBC), Yi Gangto renew the currency swap for another 3 years.

The head of the Palacio de Hacienda will be present, sergio masa; the argentine ambassador in beijing Sabino Vacca Narvajaand the Secretary for International Economic and Financial Affairs, Marco Lavagna.

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Chronology of signed agreements

The first agreement between both central banks was established in 2009.

A second agreement was signed in 2014, which was renewed in 2017 and complemented at the end of 2018 with a supplementary agreement. In August 2020, the agreement was made, which is now renewed.

The swap includes the exchange of currencies as a reinforcement of international reserves for 130 billion yuan renminbi and a special activation for 35 billion yuan renminbi to compensate the exchange market.

On Saturday Massa would return to Buenos Aires and conclude his tour of China. The next destination on the superminister’s agenda will be Washingtonwith the expectation placed that the IMF approves an advance of funds with authorization included for partial intervention in the exchange market.

*Ariel Maciel (Special envoy to Shanghai)