Short of dollars, Argentina appeals to China's Yuan to boost reserves

Wednesday, November 19th 2014 - 07:19 UTC

Full article 18 comments

The Argentine Central Bank received this week the second part of a multi-billion dollar currency swap with China’s Central Bank, worth the equivalent of 508 million dollars. The swap allowed Argentina to bolster its foreign reserves, which rose 506 million and closed at 28.785 billion dollars. Read full article

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golfcronie
The catch is “ IT HAS TO BE REPAID IN 12 MONTHS ” can't see that happening, what then? It can't pay the holdouts, still it is ONLY one tenth of the 100billion owed so far.
Nov 19th, 2014 - 10:00 am - Link - Report abuse 0
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Briton
China has enough on its plate,
without adding argentine chicken on it...lol
Nov 19th, 2014 - 11:05 am - Link - Report abuse 0
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Klingon
So both Argentina and China print some cash to pay each other. China will use the pesos to buy meat and other basic products from us.

Borrowing more money doesn't help ur economy, it just kicks the can down the road as usual.
Nov 19th, 2014 - 12:09 pm - Link - Report abuse 0
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golfcronie
About time the Argentinian government sorted their financial problems out, as it will only get worse.
Nov 19th, 2014 - 12:22 pm - Link - Report abuse 0
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yankeeboy
I think Arg is paying in the neighborhood of 15% for this loan.

I'd charge more...
Nov 19th, 2014 - 12:43 pm - Link - Report abuse 0
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imoyaro
Wait a minute, didn't the Chinese already give them two piles of cash already? What happened?
Nov 19th, 2014 - 03:11 pm - Link - Report abuse 0
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Z-ville
I see a bad circle forming...

If the value of the Peso should suddenly drop, the Chinese won't like it if they're left with a big pile of it.

So the Whacky Leadership will have to use a good chunk of that borrowed money just to prop up the peso even further.

And when the Chinese won't lend them any more...?
Nov 19th, 2014 - 04:13 pm - Link - Report abuse 0
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ChrisR
“According to ICBC’s data, this year the Yuan displaced the Swiss franc as the seventh most widely used currency in international trade, rising from 0.63% of operations to 1.39%, more than doubling its share of the pie.”

So to achieve 51% of the international currency market “pie” they only need to increase the 1.39% by a factor of THIRTY SIX.7 TIMES.

Easy peasy.

I should imagine anybody with USD are running to the market as we write!

Ha, ha, ha, ha.
Nov 19th, 2014 - 04:50 pm - Link - Report abuse 0
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Z-ville
It's a little bit like a hopeless alcoholic that suddenly gets a key to his rich uncle's liquor cabinet...instead of being forced to go to rehab...
Nov 19th, 2014 - 05:34 pm - Link - Report abuse 0
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Klingon
@ 9 An excellent analysis of the current situation.
Nov 19th, 2014 - 08:09 pm - Link - Report abuse 0
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yankeeboy
... Russia is hungry, and Argentina has food. Due to sanctions against the country, Russia doesn’t enjoy the luxury of being a picky eater, and is willing to stomach the costs of doing business in Argentina.

And China, my friends, wants your natural resources. It has deep pockets and won’t blink twice paying bribes to local government officials, customs agents, and everyone in between to get their hands on those resources as cheaply as possible.

Money knows no ideology and goes first to where it can be safe and multiply. Investment doesn’t avoid Argentina because sinister capitalists in Washington DC want to see the Kirchners’ brand of socialism whither. Argentina is corrupt and there are better options on the table.

Argentina isn’t courting investment from like-minded socialist great thinkers – it is scraping the bottom of the barrel and inviting the last men standing at the bar at the end of the night into her bed.

And Argentina… Neither China nor Russia want to watch you grow old.

They just want to f*ck you.

http://bubblear.com/spirited-defense-imperialism-whatever-lame-thing-adrian-makes-change/
Nov 19th, 2014 - 08:46 pm - Link - Report abuse 0
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Troll in The Dark
“They just want to f*ck you.”

IOW, they are just as miserably corrupt and turpitudinous folk as you.
Nov 20th, 2014 - 03:25 am - Link - Report abuse 0
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Englander
Argentines will need to moderate their innate racism towards Chinese people. Just as well it's not Africa subsidising Argentina, Mr Think wouldn't be able to help himself.
Nov 20th, 2014 - 09:37 am - Link - Report abuse 0
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Conqueror
@12. Great! Except they won't be so kind. Russia likes stealing. And your women will find they can't charge. Russia takes.
Nov 20th, 2014 - 05:45 pm - Link - Report abuse 0
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Troll in The Dark
And Britain didn't take. You just asked for things. Like you asked the Indians.

Or the Aborigenes.
Nov 20th, 2014 - 11:43 pm - Link - Report abuse 0
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imoyaro
@15

I think maybe more like you asked the Wichi, Mocovi, Toba, Pilaga, Ava Guarani, M'bya Guarani, Chane, Chulupi, Chorote, Kolla, Huarpe, Tonocote', Vilela, Diaguita, Mapuche, Tehuelche, and Rankulche. ;)
Nov 21st, 2014 - 06:49 am - Link - Report abuse 0
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Troll in The Dark
The classic “someone else did it so its ok for us to do it” alley.
Nov 21st, 2014 - 03:01 pm - Link - Report abuse 0
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yankeeboy
17. Why do Rgs live in the past? For you 200 yrs ago is like yesterday but you can also conveniently forget what happened 2,3,4 decades ago.

Whine whine whine, its no there's Societal collapse every decade or so.

Rgs are silly creatures.
Nov 21st, 2014 - 08:19 pm - Link - Report abuse 0
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