Argentina's central bank announced it would nearly double the size of the currency swap deal with China to RMB130bn (USD18.7bn), according to Sina on November 9. The bank’s chairman, Guido Sandleris, who was finalizing the deal with Beijing, stated the new deal would help to advance trade ties between China and Argentina, which is the second largest economy in South America. However, further details of the deal still remain undisclosed.
The announcement came after the IMF expanded loan sizes for Argentina to USD56bn last month to help the country stop depreciation of the Argentine peso and stabilize the troubled economy, which has an inflation rate of more than 40%. China has been increasing trade, investment, and financial support to debt-ridden countries across Latin America over the past decade to pursue closer relationships. In 2009, Argentina and China first engaged in a currency swap deal to boost Argentina’s declining reserves. Last year, both countries agreed to extend the deal for three more years.