Kathmandu— The People's Bank of China (PBOC) announced on Thursday that it has renewed a bilateral currency swap agreement with Argentina’s Central Bank, setting the swap amount at 130 billion yuan ($19.1 billion), equivalent to 28 trillion Argentine pesos. The five-year agreement is renewable by mutual consent and aims to deepen financial cooperation between China and Argentina.

Details of the Agreement

The renewed currency swap agreement, which runs for a period of five years, sets the swap amount at 130 billion yuan (approximately $19.1 billion). This is equivalent to 28 trillion Argentine pesos. The deal underscores the financial ties between China and Argentina and provides flexibility in managing their respective currencies.

Implications for Financial Cooperation

The PBOC highlighted that the renewal of this agreement will help deepen financial cooperation between China and Argentina, facilitating bilateral economic and trade exchanges. It also aims to safeguard financial market stability by providing a mechanism for currency exchange in times of need.

(With inputs from Xinhua)

Originally published on abcnews.com.np.