It is one of the financial operations that grew the most in recent times. Argentina expects the support of the United States Treasury, as advanced.
As advanced scope, The support provided by the United States Treasury to Argentina would consist of a swap, That is, an exchange of coins. This type of agreement is not new to our country, since it currently has an agreement with China.
A coin swap or currency swapit is a financial agreement between two central banks to exchange a certain amount of one currency for another, with the commitment to reverse the operation in the future. Initially, swap works to increase gross reserves And it does not impact the net, which are the reserves that the BCRA has free availability to use.
However, A country can request SWAP activation that enables him to use some cantiad of foreign exchange to perform operations, such as paying debts. In this case, once the agreement is finished, the bank that requested the activation must return to its pair the amount of money used plus an interest. It works as a kind of “loan”.
News in development.-
Source: Ambito
