Argentina is set to boost its reserves by $400 million after requesting the fourth installment of an $11 billion currency swap agreed with China.
The central bank will receive the funds in the coming days, said a central bank official who requested anonymity because he’s not authorized to speak publicly.
The $2.3 billion Argentina has received so far from the swap accord with People’s Bank of China has allowed President Cristina Fernandez de Kirchner to stabilize falling reserves following a default in July. Central bank funds rose to more than $30 billion at the end of 2014 after falling to an eight-year low of $26.7 billion in April.
The yuan that Argentina receives in exchange for pesos are convertible into any currency and can be used to service foreign debt obligations if needed, according to the government. China and Russia in October agreed on a similar three-year currency swap-line of 150 billion yuan ($24 billion).
China is stepping in to bail out flailing economies in the wake of the worst commodities rout in six years. With the world’s largest foreign reserves at almost $4 trillion, it has been able to aid Venezuela and Ecuador with a combined $27.5 billion of funding and investment.