The BCRA agreed with the People's Bank of China to renew the currency swap for RMB 130 billion (about USD 19 billion), extending the validity period to five years, the longest since the mechanism was created in 2009
In a strategic move that reinforces the financial predictability of Argentina, the Central Bank of the Argentine Republic (BCRA), under the leadership of Santiago Bausili, sealed the renewal of the bilateral currency swap agreement with the People's Bank of China (PBoC) on Wednesday for an amount of RMB 130,000 million, equivalent to about USD 19,000 million.
Unlike previous negotiations that were limited to three-year terms, the administration of Javier Milei has managed to extend the duration to five years, marking the longest contract since this tool was initiated in 2009.
Pan Gongsheng
According to the official statement from the monetary authority, this renewal “strengthens the close cooperation between both institutions and the excellent relationship they have maintained over the 17 years since the first agreement was signed in 2009”.
This milestone comes just one day before the formal expiration of the previous contract, set for August 6, and is the result of a professional management led by Santiago Bausili, who had already anticipated the continuity of the mechanism by stating: “We are talking to them just like all the last times to extend it, there is no plan to eliminate it”.
In specific terms, the activated tranche of 35,000 million yuan —approximately USD 5,000 million— remains fully in effect.
This portion of the swap constitutes immediate liquidity for the BCRA, allowing it to operate in the markets without the need for additional bureaucratic procedures, which “allows operations without requesting authorization” and provides vital flexibility to support bilateral trade and financial stability.
The strength of this negotiation contrasts sharply with the desperate and campaign-oriented use of these funds during the administration of Alberto Fernández, when the lack of reserves forced the use of yuan to pay for imports and obligations to international organizations.
Santiago Bausili and Pan Gongsheng
Under the current administration, Argentina has demonstrated exemplary fiscal and financial responsibility: as of January 14, the remaining balance of that activated tranche was only USD 679 million, meaning that the government of Milei has already repaid almost 90% of the funds used by the previous government. The figures are clear: the use of funds decreased from USD 3,097 million at the end of 2024 to just USD 1,032 million at the close of 2025.
This strengthening of the external financial position occurs in a context of historic recovery of public finances. Since the start of the fourth phase of the monetary program in January 2026, the BCRA has accumulated foreign currency purchases totaling USD 13,373 million.
Thanks to this performance, gross reserves reached USD 49,642 million, marking their highest level since September 2019, during the administration of Mauricio Macri. In the month of July alone, the monetary authority acquired USD 2,162 million, driven by the strength of key sectors such as agriculture, energy, and mining.
Finally, the management of Santiago Bausili continues to diversify liquidity tools to protect the value of the Argentine currency, adding to this swap a repo loan with international banks for USD 3,000 million, thus consolidating an impregnable financial front against any attempt at destabilization.
