Sources who participated in the last negotiation confirmed to Ámbito that the agreement expires in two years and that if it is not revalidated, the section that has already been used for the currency exchange must be paid.
A few days after Javier Milei assume the presidency, Ámbito announced the decision of the Chinese government to reverse the release of the last section of the swap that they had negotiated Sergio Massa and Alberto Fernández. But that is not all, this medium was able to corroborate from sources that participated in that negotiation that The currency exchange expires in August 2026 and that, if a new agreement is not reached by then, Argentina would have to disburse more than $5 billion to replace the yuan that was used.. The situation caused internal friction in the Government due to ideologized diplomacy.
The bilateral relationship with China under the administration of La Libertad Avanza did not start in the best way. President Xi Jinping responded quickly to the grievances that Milei launched at the Asian giant during the campaign and reversed course with the release of fresh funds that were going to provide oxygen of US$6.5 billion to the liquidity of the Central Bank to face imports or debt paymentsas happened previously with the International Monetary Fund.
The snubs to the second trading partner escalated with the praise of different members of the Government for Taiwan and were reflected in the renunciation of the BRICS, which was made official at the beginning of this week but what Ámbito anticipated a month before. At the same time that Argentina renounced participating in the emerging bloc, countries as dissimilar as Egypt, Saudi Arabia, the United Arab Emirates (UAE), Ethiopia and Iran joined as full partners.
This step aside, which was communicated by letter with copied texts to the presidents of the founding countries, It leaves the country without the possibility of accessing funds from the New Development Bank, which already finances infrastructure works for more than US$38.5 billion. Worldwide. It is also presumed that it would complicate the progress that had been made with the Development Bank of Brazil and would not pave the way for the arrival of Saudi dollars.
What could happen with the swap?
The economic team is not enthusiastic about the hyper-ideological view that Diana Mondino it imprints on foreign relations. Firstly, because several of the current officials participated in the negotiations to renew the swap during the Mauricio Macri government, but also because, If the link with China is cut, Argentina will have to replace the yuan that was used last year.
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Diana Mondino
Is about about US$5,000 million that the Fernández government used to accelerate imports of inputs. To that we must add the interests: The rate paid to China is confidential, but it has always been clarified that it is below what the IMF currently charges and analysts estimate that it is around 6% annually. High sources who participated in the last negotiation confirmed to Ámbito that the current agreement expires in August 2026 and that, if a new extension is not negotiated by then, you must pay.
It is not a minor fact. The accumulation of reserves is a central point of the economic program, especially if one considers eliminating exchange restrictions. Furthermore, there is so far no evidence that the markets are willing to provide the Government with fresh funds. Debt with the Monetary Fund, with the Paris Club, with private creditors, lawsuits in foreign courts and more. The maturity schedule does not look easy for the coming years.
Source: Ambito
