Argentina is switching to paying for imports from China in yuan against the backdrop of issues with maintaining reserves of the central bank, Argentine Economy Minister Sergio Tomas Massa said on Wednesday.
“We activated the swap with China … which will allow us to import from this country in yuan, thereby replacing $1 billion and 40 million in April and $790 million starting in May,” Massa said on Twitter, adding that “the worst drought in our history reduced our exports by $15 billion and challenged us to maintain reserves to secure imports of goods and resources that are key to the country.”
He noted that such measures provide greater strength to the country’s reserves.
The currency swap agreement between Argentina and China has been in force for years and has been revised several times by both sides. In November 2022, Argentina negotiated the expansion of the swap agreement to maintain central bank reserves. Argentine President Alberto Fernandez then said that the country was given the right to “freely dispose” of 35 billion yuan, or $5 billion.