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Having met 'on the sidelines' in Basel, Switzerland in July, Argentine and Chinese central banks agreed to a currency swap equivalent to $11b that Cabinet Chief Jorge Capitanich said could be used to stabilize reserves.. (as Reuters reports)
Argentina, which defaulted on its debt in July, will receive the first tranche of a multi-billion dollar currency swap operation with China's central bank before the end of this year, the South American country's La Nacion newspaper reported on Sunday.In adition, Bloomberg reports
The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation's foreign reserves under intense pressure.
La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina's President Cristina Fernandez and her Chinese counterpart in July.
People's Bank of China Governor Zhou Xiaochuan expressed his support for Argentina in its legal fight against holdout bondholders* * *
Isolated, indeed... as China and Russia roam the world making friends with every nation that the US is "involved" with...
If a nation is allowed to run as a bad business would why do we continue with the same foolish ways yet expect change? Is there one nation that is not in debt? If so what is their paradigm of living? Surely not capitalism, we see all around us the end result of "live now on credit, pay the rest of your life" mindsets.
A nation should be self sufficient. Only then can it extend its arms in trade. North America is....a pretty big place that cant look after itself apparently.