BUENOS AIRES (Reuters) – Argentina and China have formalized the growth of a foreign money swap deal, permitting the South American nation to extend its depleted overseas foreign money reserves, the Argentine central financial institution stated on Sunday.

Argentina’s authorities must rebuild reserves to cowl commerce prices and future debt repayments, and extra reserves are a key goal of a serious debt take care of the Worldwide Financial Fund (IMF).

President Alberto Fernandez introduced the deal in November final 12 months and stated on the time it was value $5 billion.

The heads of the Argentine and Chinese language central banks “confirmed that the deal for the swap of currencies between each establishments has been activated and dedicated to deepening using () within the Argentine market,” the central financial institution stated in an announcement.

China is Argentina’s second greatest commerce associate, after Brazil, and the second most necessary vacation spot for Argentine exports.

“The swap contains the alternate of foreign money for reinforcement of worldwide reserves of 130 billion yuan and a particular activation of 35 billion yuan to compensate operations on the overseas alternate market,” the assertion stated.