BUENOS AIRES (Reuters) -Argentina’s central financial institution stated on Wednesday that China has cleared a foreign money swap line totaling a freely accessible $6.5 billion, a part of a broader deal the South American nation has been utilizing to assist it defend the embattled native peso.

The settlement with China has helped Argentina enhance its depleted international foreign money reserves because it undergoes a serious financial disaster, with annual inflation above 130% and central financial institution greenback reserves hitting adverse ranges.

The Wednesday transfer in observe will increase the quantity Argentina can entry as a part of the swap line formalized in early 2023.

“China has elevated the quantity and as an alternative of $5 billion we’re getting $6.5 billion,” Argentine President Alberto Fernandez advised Radio 10 from the Asian nation, the place he’s for an official journey.

“Each time we went by means of troublesome instances, Xi Jinping’s authorities gave us its assist,” Fernandez added. “This is a crucial step in order that manufacturing (in Argentina) doesn’t cease.”

That is the second swap line with China activated throughout Fernandez’s presidency. In response to an official financial institution supply, the whole quantity of the swap line stood at 47 billion yuans.

The transfer comes as Argentines head to the ballots on Sunday for a presidential election. Libertarian Javier Milei, who has vowed to dollarize the financial system and shut down the central financial institution, is seen because the front-runner.