Peso is still falling, Argentina wants to raise $5 billion in currency exchange between China and Azerbaijan

Peso is still falling, Argentina wants to raise $5 billion in currency exchange between China and Azerbaijan

Original title: peso is still falling, Argentina wants to raise $5 billion currency exchange between China and Azerbaijan

[Wen / observer network Li Huanyu] even received the largest loan given by the International Monetary Fund (IMF) - $50 billion, the Argentina Peso was still falling, creating a 26.009 record low against the dollar.

To strengthen its control over the foreign exchange market, the Arab government wants to turn to China for help. In June 11th, the Argentina financial newspaper reported that the Central Bank of Argentina wanted to increase its currency swap agreement with the Central Bank of China to increase 30%-50%, that is, up to $5 billion.

Currency swap agreements can help the Arab government have more foreign currency reserves to prevent Peso from softening. Earlier, the Financial Times said Argentina is negotiating with China to expand the scale of currency swap agreements.

A screenshot of the report of the Argentina financial press

50 billion dollars will not stop. The Arab government is seeking help from China.

According to the Xinhua news agency in June 12th, although the government announced last week that it has obtained a $50 billion loan from IMF, the Argentina peso is still falling this week, and its exchange rate against the dollar has been re - innovating - 26.009.

50 billion dollars is the biggest money IMF has ever given, and many economists and analysts believe that the money and its plans will help to ease people's worries about the economic situation in Argentina and stabilize the peso's currency.

According to the additional conditions of IMF, what the government needs to do is to expand the autonomy of the central bank, reduce the deficit to 1.3% of GDP, and achieve balance of payments in 2020.

But Bloomberg said that such a huge sum of money aggravated people's worries, adding that the economic structure was very fragile, and the outside world questioned whether Argentina could comply with the loan conditions, or could pay more than $50 billion.

Argentina Peso further fell against the US dollar, hitting 26.009 of its lowest level. Photo source: Argentina financial journal.

To enhance their control over the foreign exchange market, the Argentina government wants to increase strategic reserves as much as possible, and negotiations with China have begun.

Marcos Pena (Marcos Pe n a), the chief minister of the cabinet, said in an interview with the financial times on 6 July that they were negotiating with China to expand the size of the Sino Arab currency swap agreement.

Now, new details are exposed. Argentina's "financial journal" on June 11 Daily said that the Argentina central bank hopes to increase the amount of the currency swap agreement signed by the Central Bank of China by 30%-50%, or $5 billion. At present, the negotiation process and the launch are expected to be held at the annual meeting of the bank for International Settlements in Basel, Switzerland, this month. The outcome of the negotiations will be released next weekend.

China and Argentina formally reached a currency swap agreement on 2015, with a scale of 70 billion RMB or 90 billion Argentina peso. Last July, the agreement was extended for three years, with a total of 21.9% of the total savings of the Central Bank of Argentina.

Argentina Peso data map

On the other hand, Argentina also intends to strengthen ties with China in the field of trade.

"Wall Street news" quoted the Argentina national newspaper as saying Argentina would continue to cut its export tariffs on soybeans, and its agricultural minister said, "the government's policy is to cut and cancel export tariffs." The plan to cut tariffs every month will continue. "

China was the number one buyer of soybean in Argentina last year, and imports reached 6 million 350 thousand tons.

Another Argentina media report said the Minister of Agriculture held talks with officials of the national grain and Material Reserve Bureau in Beijing at the end of last month to discuss the increase in export of soybean oil to China. He also held talks with Chinese officials in mid last month, hoping to open up the Chinese market for Argentina soybean meal.

Last August, the Argentina government confirmed that China had resumed the import of Argentina soybean oil. In 2015, China imported 523518 tons of Argentina soybean oil, but the soybean oil trade was interrupted at the end of 2015.

Editor in responsibility: Yu Pengfei

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