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Confirmation of Local-Currency Swap Deal Renewal With China

ARGENTINA
  • Official confirmation of the local-currency swap deal renewal with China following Economy Minister Sergio Massa meeting last week in Beijing with the governor of the People’s Bank of China, Yi Gang, to discuss the renewal and expansion of the swap line.
  • The swap line now totals 130b yuan renewed for 3 years, having previously only had approval to use up to 35b yuan of swap line.
  • Of note overnight, Argentina’s local currency rating was downgraded by S&P to SD from CCC-. The negative outlook on the long-term foreign currency rating reflects risks surrounding pronounced economic imbalances and policy uncertainties before and after the 2023 national elections. S&P views Argentina's peso-debt exchange a distressed exchange as tantamount to default.

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