Argentina Secures New $5 Billion Lifeline with China amid Reserve Pressures

Argentina has secured an additional $5 billion from China as part of a bilateral currency swap, providing relief to Argentina's dwindling reserves and marking a significant partnership with China. This deal comes amid criticism from the US and highlights Argentina's strategic pivot under President Javier Milei.

Argentina has struck a crucial agreement to access an additional $5 billion from China, a move set to alleviate pressure on the nation's diminishing foreign reserves. This strategic partnership with China emerges despite criticism from the Trump administration.

The Central Bank of Argentina confirmed the continuation of an $18 billion bilateral currency swap with the People's Bank of China, extending the facility for another year. This permits Argentina to draw a further $5 billion, payable in China's yuan, aiding its beleaguered peso and facilitating Chinese investment and imports.

Amidst US concerns about Argentina's ties with its global rival, the currency swap offers the South American nation some economic relief. Javier Milei's administration juggles diplomacy, courting US investment while maintaining pragmatic relations with Beijing to stabilize Argentina's economy.

(With inputs from agencies.)