"This agreement replenishes the bilateral exchange agreement signed between the two banks in July 2017. The total amount of swaps, including the two contracts, amounts to $ 130,000 million, "the Central Bank said in an announcement of more than $ 18,000m.
The impact on reserves will be effective when BCRA will organize it, as money is already available. "This new agreement will help promote greater financial stability and strengthen the relationship between the two central banks. It will also facilitate trade between the two countries"explained the financial institution.
The exchange of currencies with China was a strategy implemented by Christina Kirchner's government in its second term. For a long time it was discussed whether the Chinese currency is truly convertible and can be part of the foreign exchange reserves. But already at the beginning of the leadership of Mauricio Macri, the Chambers used part of the yuan to convert them into dollars. So cleared suspicions in connection with this tool.
On Sunday, the governments of China and Argentina signed more than 30 trade and investment agreements, in a ceremony led by the presidents Xi Jinping and Mauricio Macri in the presidential residence in Olivos.
Xi was the only foreign leader to fulfill the state visit to the country, while the G20 summit was held on Saturday.
China is the second proprietor of Argentina behind Brazil. The exchange reached $ 17,000 million in 2017, but the balance shows a deficit for Argentina of $ 7,736 million.