Argentina’s central bank has renewed its currency swap agreement with the People’s Bank of China for five years, extending the facility to 2031 and locking in more than $19bn of support for the country’s international reserves.

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Argentina is negotiating an extension of its currency swap agreement with China even as it moves to repay most of the activated funds under the facility by mid-2026, according to statements from the country’s central bank.

US Treasury Secretary Scott Bessent has announced that the US government profited from the $20bn currency swap provided to Argentina.

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Investing.com -- China’s central bank announced Friday it has extended a currency swap agreement with Turkey’s central bank for another three years. The People’s Bank of China (PBOC) said the agreement amounts to 35 billion yuan ($4.87 billion) or 189 billion Turkish lira, according to a statement released by the PBOC. In addition to the swap extension, both central banks signed a memorandum of cooperation to establish a yuan clearing arrangement in Turkey, the statement added. The currency swap allows the two countries to exchange currencies to facilitate trade and investment without relying on the U.S. dollar. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

BUENOS AIRES (Reuters) - China is on a crash course with the United States over a major Chinese currency swap deal with Argentina that has buffered the South American country’s depleted foreign reserve levels even as it seeks a new deal with the Washington-based IMF. In a talk at Miami Dade College late last week U.S. Special Envoy for Latin America Mauricio Claver-Carone slammed the long-standing $18 billion swap line as amounting to "extortion" by China and said Washington wanted to see it ended. On Tuesday Chinese foreign ministry spokesman Lin Jian, in a regular press conference, shot back at the United States, alleging that Washington was trying to "drive a wedge" between China and partners in Latin America. "Fair-minded people are able to tell who is extorting and coercing others and making trouble," he said in response to a question about Claver-Carone’s comments. "Argentina’s currency swap with China has for a long time played an important role in stabilizing its economy and finances, which is welcomed and well received in Argentina." China, the world’s No. 2 economy that is facing a major trade war standoff with U.S. President Donald Trump, has a long-term swap agreement with Argentina, a serial defaulter that has been firefighting a sliding currency and dwindling foreign currency reserves for years. That swap line has come under scrutiny under Trump, an ideological ally of Argentina’s libertarian President Javier Milei. Milei faces a tough juggling act, however, between his White House ally and China, which snaps up Argentine soy, beef and lithium. Argentina and China last year renewed the activated part of the currency swap through July 2026, which helped to defuse fears over a payment crunch. The central bank did say then it would gradually ramp that down to zero by mid-2026. Claver-Carone, asked about Argentina and its talks with the International Monetary Fund (IMF) over a new $20 billion loan program, said he hoped the talks ended in success, but that Washington was concerned about China’s role in the country. "What we would like to see, eventually, is the end of the famous line of credit Argentina has with China," he said. "That line of credit is extortionate, and as long as they maintain that line of credit, China will always be able to extort." He did not give details about how the currency swap was extortionate, though the United States has long warned about what it calls Chinese debt diplomacy in Latin America. China says it offers tangible trade and investment to the region.

shaunasboardTrump’s $40 billion “currency swap” with Argentina isn’t a smart trade — it’s a bailout for his billionaire buddies. 💸 The peso crashed 75%, U.S. farmers lose, and taxpayers get stuck holding worthless pesos.#ArgentinaDeal #CurrencySwap #TrumpBailout #FollowTheMoney