$9bn currency swap with China to boost Argentina's reserves

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G20 declaration stresses fair, sustainable development

China and Argentina signed a US$ 9 billion currency swap agreement to boost the South American country's foreign currency reserves, its central bank announced on Sunday.

Trump and his Chinese counterpart Xi met on the sidelines of the G20 summit in Buenos Aires on Saturday.

China and Argentina hope to close a deal related to the construction of the latter's fourth nuclear power plant this weekend, reports Reuters.

Xi said that he and Macri, meeting five times in less than three years, created a record in the history of bilateral ties, and that China-Argentina relations are witnessing unprecedented breadth and depth.

Both China and Argentina are major developing countries and emerging-market economies, and they should work jointly to support multilateralism and an open, inclusive global economy, he added.

The two sides should also strengthen cooperation in such areas as infrastructure, agriculture, energy and finance and enhance people-to-people exchanges, Xi said.

Now, this latest agreement will "contribute to greater financial stability and also facilitate trade" between China and Argentina, according to the bank's statement.

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Argentina's central bank will be able to draw on these funds in an emergency.

China's president signed new trade deals with Argentina yesterday [Macau time] as the Asian giant expands its growing role in Latin American economies. In 2017, the relationship was firmly in Beijing's favour: China exported $17 billion of goods to Argentina, while importing $8 billion of goods from that country.

The visit comes after US officials said they had reached a 90-day truce in the trade dispute with China that has rattled financial markets and imperiled global economic growth.

Despite the fact that Trump and Xi temporarily agreed not to impose new tariffs on each other's goods on January 1 and to continue negotiations seeking a way out of their ongoing trade war, the conflict remains open and, without referring to the US, Xi said that Argentina showed the true "spirit" of the G20 meeting, which ended on Saturday in Buenos Aires.

Argentina also granted Xi the top honor awarded to foreign politicians, and the Argentine polo association gave the Chinese leader a polo horse.

Macri welcomed Xi's visit and expressed gratitude for China's help and support in his country's development.

Calling China a major engine driving the world economy, Macri said China's development and the realization of the Chinese Dream bear major significance to the development of Argentina and Latin America, and carry profound meaning to world peace, stability and prosperity.

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