According to the chief of the central bank, an Argentina-China currency swap which is multibillion-dollar is going to be launched in the month of November, supporting the weakened foreign reserves of the mentioned South American nation.
The said swap is going to allow Argentina to spend their money on imports from China with yuan or to reinforce the hard currency reserves that they have, which have all fallen this year by over 30 percent.
It’s a portion of some loan which has a total value of 11 billion dollars, signed by Cristina Fernandez, the president of Argentina, as well as her counterpart in China in July, immediately before Argentina defaulted the debt it had, twice now, in 12 years.
Pagina12, the newspaper that interviewed Vanoli which possesses close ties along with the government of Fernandez, no longer added more information about the exchange.
In addition to that, there were no central bank and government officials available for gathering comments regarding the concern.
Reuters was able to interview sources saying that Argentina is going to receive an initial Chinese yuan installment worth around 700 to 800 million dollars before the year ends.
Argentina, too, has depended on the reserves it has to have government expenses paid. It has also struggled in the replenishment of such without having access to the global capital markets ever since it got defaulted.
Vanoli said to Pagina12 that reserves are supposed to be used. The government does not have fears, in situations as relevant as such, in paying off the debts it has with its reserves.
Earlier this October, Vanolia took the position of being the central bank’s head after the previous central bank head quit due to government disputes.