Source: Global Network

[Global Network Comprehensive Financial Report] Recently, the World Bank and the International Monetary Fund successively announced financial support arrangements exceeding ten billion US dollars for Argentina, aimed at supporting Argentine economic reforms.

In detail, the World Bank announced a one-time support plan of 1.2 billion US dollars for Argentina; the Executive Board of the International Monetary Fund (IMF) approved an extended fund arrangement (EFF) agreement with a duration of 48 months and a total amount of 20 billion US dollars, and immediately disbursed 12 billion US dollars to Argentina.

Previously, Argentina's Minister of Economy, Caputo, held a press conference to announce that starting this week, the exchange rate controls would be lifted. Caputo said: "Through the agreement reached with the International Monetary Fund, we will work harder than ever before to fulfill and repay our debts. This means we have a healthier currency and accelerate the disinflation process; this is exactly what the new agreement brings us."

Meanwhile, the Central Bank of Argentina recently issued an announcement stating that it has reached an agreement with the People's Bank of China, and both parties agreed to extend the activated portion of the bilateral currency swap agreement totaling 35 billion Chinese yuan (approximately 5 billion US dollars) by 12 months. The announcement pointed out that the payment was originally scheduled to expire in June 2025, and after the renewal, it will be extended to mid-2026. This move helps Argentina smoothly transition to a stable and sustainable monetary and exchange rate system to cope with the severe challenges of current external capital flows.

The Associated Press believes that replacing the US dollar with the renminbi for settlement provides breathing room for Argentina's increasingly depleted foreign exchange reserves, thereby supporting the volatile peso. This helps Argentine enterprises pay for Chinese imports and makes it easier for Chinese enterprises to invest in Argentina. (Wen Hui)

Original text: https://www.toutiao.com/article/7492982013692199464/

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