The global crisis intensifies and threatens to destabilize Argentina’s economy. On Tuesday, China responded to the U.S. rejection of the currency swap agreement between Argentina’s Central Bank and Beijing, stating that it “contributes to the economic and financial stability of Argentina and is welcomed by the Argentine government.”
China Defends Credit Agreement
Lin Jian, a spokesperson from China’s Ministry of Foreign Affairs, urged the U.S. to adopt a correct perspective and consider how it can contribute to the development of Latin American and Caribbean countries.
U.S. Calls for End to Credit
This stance from China’s Xi Jinping administration was in response to Mauricio Claver Carone, Donald Trump’s special envoy for Latin America, who demanded the termination of credit between the two nations.
“We want the famous line of credit that Argentina has with China to end,” emphasized Claver Carone.
Swap Agreement’s Significance
The currency swap agreement with China is a cornerstone of the Central Bank’s reserves, representing nearly 18 billion dollars in its gross holdings. Amid escalating tensions with the U.S., China began to devalue its currency, rising from 7.27 yuanes per dollar to 7.34 yuanes in a week.
This move, aimed at countering the 104% tariffs imposed by the U.S., weakens the Central Bank’s balance sheet.
