It was announced that China and Argentina have entered into a $10 billion three year swap agreement that will provide Argentina with a line of reserves to potentially help its currency trade. They were not able to get a swap line form the Fed. China has done this before with other Asian countries but this is the first time with a Latin American country.
This is very interesting because it come on the heels of the discussion for a global currency by the Chinese. The symbolism of this signing is much greater than the actual economic impact but this type of agreements are worth watching because it shows the growing desire by the Chinese to take an active role in international finance.
This is very interesting because it come on the heels of the discussion for a global currency by the Chinese. The symbolism of this signing is much greater than the actual economic impact but this type of agreements are worth watching because it shows the growing desire by the Chinese to take an active role in international finance.
No comments:
Post a Comment