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China agrees USD 9 billion currency swap with Argentina

AFP  |  Buenos Aires 

and signed a USD 9 billion swap deal to boost the crisis-stricken South American country's foreign reserves, its announced Sunday.

Struggling to recover after a crisis earlier this year, Latin America's third largest sought the help of the -- which approved a USD 56 billion loan package.

Now, this latest agreement will "contribute to greater financial stability and also facilitate trade" between and Argentina, according to the bank's statement.

A sees two parties agree to exchange a certain amount of foreign currency at a pre-determined rate, protecting against fluctuations.

Argentina's will be able to draw on these funds in an emergency.

The agreement followed the summit in Buenos Aires, as Chinese was received by his Argentine counterpart for a state visit.

The two countries signed 30 trade and financial agreements in total.

"We are extending cooperation on economic, agricultural, financial and infrastructure issues," Xi told a press conference.

After Brazil, is Argentina's second largest trade partner.

In 2017, the relationship was firmly in Beijing's favor: China exported USD 17 billion of goods to Argentina, while importing USD 8 billion of goods from that country.

and also agreed another in 2014, which provided USD 11 billion for Argentina's depleted treasury reserves.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 01:55 IST