What’s new: The central banks of China and Argentina have formalized an expanded currency swap pact, in yet another move to internationalize the yuan, also known as the RMB.
The deal adds a special activation of 35 billion yuan ($5.2 billion) to a previous agreement, which was valued at 130 billion yuan, the Argentine central bank said in a Sunday statement.
During to a recent meeting organized by the Bank for International Settlements in Basel, Switzerland, the heads of both central banks “were committed to deepening the use of the RMB in the Argentine market," the statement said.
The background: China has long been Argentina’s second-largest trade partner behind Brazil.
The two countries first agreed to swap 70 billion yuan, or 38 billion pesos, in 2009. The figure grew to 130 billion yuan in 2020.
Related: Cover Story: Why the Yuan Is Suddenly Gaining International Traction
Contact reporter Zhang Ziyu (ziyuzhang@caixin.com)
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