Exchange with yuan: Sergio Massa and Miguel Pesce meet the president of the Chinese central bank

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At 14:00 in Beijing and 1:00 in Buenos Aires, Miguel Pesce will meet 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.

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the Minister of the Economy, Sergio Massa; the Argentine ambassador in Beijing, Sabino Vacca Narvaja, and the secretary for 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 It was Martin Redrado. A second agreement was signed in 2014, renewed in 2017 and integrated at the end of 2018 with a supplementary agreement.

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In August 2020 the deal was signed and is now being renewed. Swap includes the exchange of currencies such as strengthening of international reserves by 130 billion renminbi yuan and a special activation by 35 billion yuan renminbi to clear operations on the foreign exchange market.

This is an exchange of 18,000 million dollars and the possibility of free use for the Central Bank of 8 billion dollars. The latter figure is activated to the extent that the 5,000 million dollars that the Argentine central office has at its disposal are used.

With a confidentiality agreement The interest rates charged on these loans are not known. Before the US raised them, they were more expensive than loans from multilateral organizations, now they would be up to 25% cheaper.

The exchange with the yuan that expired in August and that an early renewal has now been obtained was the main reason for Massa’s tour of China.

New in development.​

Source: Clarin

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