Argentina renews $19bn China currency swap despite US pressure
Argentina's central bank and China's central bank extended a $19 billion currency swap line for five years, defying US calls to abandon the arrangement.
Updated last month3 new reports, including Wired, CGTN, The New York Times.
The short version
Argentina renewed a $19 billion currency swap with China for five years. The deal, which runs to 2031, preserves a financial lifeline that Washington had spent over a year urging Buenos Aires to abandon.
Argentina's central bank and the People’s Bank of China signed an extension of a 130 billion yuan currency swap line on August 5, 2026.1 The existing swap deal was due to expire on August 6, 2026, and the new term runs to 2031.1 The swap line is valued at approximately $19 billion at current exchange rates.1
The extension is two years longer than any previous term of the swap agreement.1 Washington had spent more than a year pressing Argentina to give up the currency swap with China.1 Argentina renewed the swap despite US pressure to abandon the arrangement.1
The Argentine central bank and the People’s Bank of China signed the extension a day before the existing deal was due to expire.1 China and the United States are clashing diplomatically in Argentina as President Javier Milei balances ties with Washington and Beijing.2 President Javier Milei has sought to preserve a close alliance with Washington while pursuing deeper economic ties with Beijing.2
Why it matters
A currency swap is an agreement between two central banks to exchange currencies at a fixed exchange rate, often used to provide liquidity or stabilize financial markets.1
The swap line with China provides Argentina with access to yuan-denominated funds, which can be used to settle trade or stabilize reserves without relying solely on US dollars.1
This account was written from the 2 reports listed below, filed by 2 independent outlets, and checked against them line by line. It is not a copy of any one of them. Spotted an error? Tell us.
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