Milei renews Argentina's US$5bn China currency swap despite US pressure
The self-styled Beijing critic extends the active yuan swap tranche for 12 months as Washington presses Buenos Aires to cut financial ties
Summary
The Bcra renewed the active US$5bn (35bn yuan) tranche of Argentina's swap line with the People's Bank of China for another 12 months, extending portions that had been maturing in mid-2026 — the second renewal in two years. The move proceeds despite Javier Milei's past anti-Beijing rhetoric and explicit United States pressure (reported by SCMP as a Trump "ultimatum") to curb financial ties with China. The swap underpins reserves at a moment when the peso is pressed against its band ceiling (see Argentina's peso nears its band ceiling even as the BCRA buys a record in dollars). Milei has also floated a 2026 trip to China.
By the numbers
- US$5bn (35bn yuan) — active swap tranche renewed.
- 12 months — extension term.
- 2nd — renewal in two years.
Why it matters
The swap is a quiet reserve backstop Milei cannot easily abandon, even as he aligns ideologically with Washington. Renewing it tests how far US pressure reshapes Argentina's financial dependence on China — and whether ideology yields to the arithmetic of reserves.
What to watch
- Whether Milei proceeds with a China visit in 2026.
- Any US conditionality tied to the IMF program or trade deal.
- Future tranche maturities and further renewals.