Argentina extends $19 billion yuan swap with China through 2031 despite U.S. pressure

On the eve of the existing agreement’s expiry, Argentina’s central bank and the People’s Bank of China signed a new extension for the 130 billion-yuan currency swap, now set to remain active until 2031. This marks the longest term since the swap’s inception in 2009, adding two extra years compared with earlier renewals. The Argentine authorities highlighted that the extended period will provide “greater predictability over the continuity of this tool.”

The decision follows a proposal from the U.S. Treasury Department to create a competing facility, which Buenos Aires ignored. Despite President Javier Milei’s campaign pledge to avoid dealings with communist regimes, the swap was maintained. The arrangement allows Argentina to draw yuan against pesos, with the full amount counted in foreign-reserve statistics but only becoming debt when a tranche is used.