MercoPress. South Atlantic News Agency

Argentina makes payment to IMF in yuan

The disbursement has weakened the Central Bank’s reserves to levels unseen since 2006

Argentina has complied with the payment of interests to the International Monetary Fund for US$ 790 million, it was reported Tuesday in Buenos Aires.

The South American country made a new payment worth the equivalent of SDR (Special Drawing Rights) 600 million to the IMF Monday, thus denting the Central Bank’s (BCRA) reserves, which stood at around US$ 21.1 billion, the lowest since 2006 when then-President Néstor Kirchner paid up all of Argentina’s debt to the Fund.

Monday’s payment was made in yuan stemming from the extension of the currency swap with China for a sum tantamount to US$ 6.5 billion.

The payment was made on Monday when there was no banking activity in Argentina due to the Bank Worker Holiday and pending the outcome of the Nov. 19 presidential runoff, after which new negotiations are expected between the IMF and whoever wins between Economy Minister Sergio Massa and Libertarian Congressman Javier Milei.

Massa has already announced an IMF Independent Evaluation Office (IEO) mission will be arriving later this month in Argentina to further evaluate the country’s situation after the highly controversial loan granted to the previous administration of then-President Mauricio Macri.