China has reportedly suspended a US$6.5 billion currency swap deal with Argentina

In Beijing, Chinese Foreign Ministry spokesman Wang Wenbin also declined to confirm or deny the reports on Wednesday, saying only that China is “committed to cooperation with Argentina on the basis of equality and mutual benefit”.

Argentine President Javier Meili speaking at his inauguration ceremony in Buenos Aires on December 10. Photo: AP

The funding is part of a deal to be renewed every year since 2009, which is critical for Buenos Aires due to its negative holdings of international dollar reserves. Given the South American nation’s reputation for defaulting on international debt, Argentina has relied on such swaps as one of its few credit options.

The main purpose of the funds, which China first promised to Argentina’s then Economy Minister Sergio Massa in October, was to boost imports and fulfill International Monetary Fund obligations

Source: Business News