MercoPress. South Atlantic News Agency
Chinese relief for Argentina: central banks activate currency-swap
The central banks of Argentina and China on Thursday activated a bilateral currency-swap agreement, which meant that the Argentine central bank received an initial tranche of Yuan equivalent to 814 million dollars. Read full article
Comments
Disclaimer & comment rulesI must have missed something here. Why would the Chinese want Argentinian Pesos ?
Oct 31st, 2014 - 09:45 am - Link - Report abuse 0This same process already exists between Brazil, China and Russia. The exchange of currencies between central banks and trade in local currency is already 100 billion dollars.
Oct 31st, 2014 - 10:40 am - Link - Report abuse 0It's a great deal for China, high interest and guaranteed payment. Argentina just got a loan from a loan shark.
Oct 31st, 2014 - 10:56 am - Link - Report abuse 0As they deserve.
I hear the $ for the Dams is on hold now that Argentina is in default on their next series of bonds.
:)
I think the idea is that a 'currency swap' involves interest.
Oct 31st, 2014 - 10:58 am - Link - Report abuse 0China is taking the risk that, in order to make money, it is prepared to risk losing it through default. The chance that Argentina will default is made less by this currency swap.
What seems clear to me is that this $0.8 billion is in addition to the $10.2 billion, giving $11 billion in total.
It looks like the $11 billion will be lost in default. China will, of course, take Argentina's land in lieu of default.
They should get a major part of Argentina for $11 billion+interest.
No 30 cents on the dollar with the Chinese, I think.
Now they're going to as France for another tranche.
Oct 31st, 2014 - 11:25 am - Link - Report abuse 0They want U$650MM to pay the next PC installment
I'm guessing it won't happen.
de minimus. The BCBA excess blue volume utilized to expatriate dollars is $21,000,000,000.00 US per month. So this loan is a bridge to no where.
Oct 31st, 2014 - 12:54 pm - Link - Report abuse 0(1) Clyde15
Oct 31st, 2014 - 03:59 pm - Link - Report abuse 0You seem to “miss an awful lot” about Argentina...
If so interested, wouldn't it be wise you tried to inform yourself a bit better?
(4) GeoffWard
Your analysis of the Argentinean political reality are a hundred times worst than your analysis of the Brasilian political realty....
Try to get some coaching from somebody that knows how things work in the Hood...
What about your “Commie” missus?
#7
Oct 31st, 2014 - 04:24 pm - Link - Report abuse 0I was hoping someone would inform me why a “savvy” country like China would want Argentinian pesos which is a virtually worthless currency in world wide trading terms.
Possibly I am as ignorant about Argentina as you are about the UK and The Falklands.
Think...http://bit.ly/1tor36n suck on that :-)
Oct 31st, 2014 - 04:31 pm - Link - Report abuse 0#7 Thanks, Think.
Oct 31st, 2014 - 04:39 pm - Link - Report abuse 0Please feel free to correct my analysis @ #4.
P.S. my Brasilian partner and I split up 3 years ago. You should know this. Memory problems, m'thinks.
(8) Clyde15
Oct 31st, 2014 - 04:41 pm - Link - Report abuse 0You say...:
“Possibly I am as ignorant about Argentina as you are about the UK...”
I say...:
Possibly..., and that's why..., with the exception of the issue of Scottish Independence, a “gut feeling” I obviously share with some 1.6 million Scots that follow their hearth, not their wallet..., I never comment about internal British Affairs...
The Malvinas Islands though, are my backyard and I know a fair amount about them... (and them squatting Kelpers)
(8) Clyde 15
Oct 31st, 2014 - 06:49 pm - Link - Report abuse 0China's interest in shipping large amounts of cash to Argentina is quite obvious. China is the world's number one industrial goods producer nation and Argentina is a big and growing customer. Anyone who lives in Argentina is fully aware that Chinese goods are in high demand but not readily available. Retailers here always offer “la problema con la importacion” as the explanation for low stock of Chinese goods. If only a portion of the loan money is used to facilitate the import of industrial goods, the Chinese are way ahead whether Argentina pays back the loan or not.
#12
Oct 31st, 2014 - 07:05 pm - Link - Report abuse 0Do you honestly think that Argentina has taken China's 'loan' money in order to facilitate massive influx of imports from China???
(10) GeoffWard
Oct 31st, 2014 - 07:16 pm - Link - Report abuse 0Odd... I don't recall having being informed about that minor detail...
Your omission..., or my Alzheimer Light, perhaps?
Anyhow......, now than the doctors have cleared you...
Enjoy the rest of it and...
Cheers to Freedom...
Regards
El Think
(12) El Polaco
A friendly correction to a friend of Argentina...:
“EL problema”
Saludos
El Think
It is not a currency-swap, China is merely buying toilet paper !
Nov 01st, 2014 - 08:04 am - Link - Report abuse 0As the article points out, the Chinese currency is readily convertible into other currencies and at some point Argentinas appeals will run out and it will need to pay its debts.
Nov 01st, 2014 - 08:23 am - Link - Report abuse 0As for China the swaps value will base on the exchange rate it is offered, I think you can bet your life it wasn't the official rate. the General pattern is that no one wants to buy Peso everyone wants to sell so it will have to be offered a very special deal bearing in mind if the Chinese ambassador went into any square in Argentina with a fistful of cash and said who wants to sell Pesos he would be mobbed by people wanting to sell and could easily clear the amounts reported in the article in minutes.
#11
Nov 01st, 2014 - 10:06 am - Link - Report abuse 0“that follow their hearth, ”
Were they moving their fireplaces ?
You were being over simplistic in making a wrong assumption that the “NO” voters were only thinking about their financial position. Family ties are stronger than financial ties.
Hi Clyde
Nov 01st, 2014 - 10:53 am - Link - Report abuse 0hearthlands and heartlands are both used in anthropology.
(18) GeoffWard
Nov 01st, 2014 - 01:34 pm - Link - Report abuse 0Zeroing in, huhhhhh?
“The lack of money is the root of all evil.”
Nov 01st, 2014 - 05:01 pm - Link - Report abuse 0More Maxims of Mark [Twain] edited by Merle Johnson (1927)
17
Nov 01st, 2014 - 07:09 pm - Link - Report abuse 0I think he was talking about me....
@21
Nov 01st, 2014 - 10:02 pm - Link - Report abuse 0you have already burnt your bridges...
:-)
Wait a mo did someone mess up their login again?
Nov 02nd, 2014 - 02:09 pm - Link - Report abuse 01 Clyde15,
Nov 03rd, 2014 - 04:21 pm - Link - Report abuse 0The 11 billion dollars in yuans is provided by the Chinese government for Argentina to be able to pay for all the rubbish we buy from the Chin in yuans, the pesos will be used by the Chins to pay us for our soy and other agricultural products.
Of course the Chin will be getting an interest rate of 15+%!!!!!!!!
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