The president of the Central Bank of the Argentine Republic, Miguel Pesce, highlighted the expansion of the currency swap with China.
The president of the Central Bank of the Argentine Republic, Miguel Pescehighlighted the expansion of currency swap with China.
During his statement, highlighted the collaboration and cooperation with various central banks around the world, including the People’s Bank of China. Pesce emphasized the relevance of this agreement in the midst of challenging economic situationsmarked by the drop in resources due to the drought and the estimated losses worth US$25,000 million.
The Chinese government and the People’s Bank of China have authorized a significant sum of US$47 billion, providing respite in the face of adverse circumstances. This support is expected to be crucial until the recovery of resources is achieved with a better harvest next year, in addition to the projection of income from lithium exports in the near future and copper for the year 2025. The expectation is that Argentina will become a net energy exporter, eliminating the need to import gas and oil.
Pesce highlighted the construction of a financial bridge with the People’s Bank of China, fundamental to reach this turning point in the Argentine economy.
Despite expectations of an increase in reserves of US$ 4 billion in 2023, which were frustrated by the drought, China’s support is allowing the construction of this bridge until the trade balancethe balance of payments and the exchange balance improve considerably.
Furthermore, Pesce did not fail to recognize the fundamental work of the Foreign Ministry, through Ambassador Vaca Narvaja, and Minister Sergio Massa in this achievement. He emphasized that this success cannot be attributed exclusively to the Central Bank, since it has been the result of teamwork and intense dialogue with colleagues from the People’s Bank of China on technical and strategic aspects.
This international collaboration represents a significant step towards the economic stability and future development of Argentina.
Source: Ambito
