In this news
- Agricultural mission to China
- Swap for the BCRA
Between Javier Milei’s haste to get out of the trap and increase levels of international trade, Argentina accelerates steps to renew with China the expansion of the swap with yuan and at the same time promote the sale of agricultural products to the giant eastern market.
Milei’s pragmatism goes beyond ideological differences with the Chinese communist giant. The Government’s negotiations with Beijing for fresh funds and increased exports run on separate lines. But in all cases they come together under the same objective: the need for the Milei administration to get a break in financial terms for the state coffers.
The decision to advance the expansion of trade and the extension of the swap is part of an agenda of continuity of the work undertaken by the chancellor Diana Mondino on her recent visit to China where she held high-level meetings of Xi Jinping’s government.
As far as he could know The chronicler from diplomatic sources and from the Government itself, the authorities of the Central Bank (BCRA) led by Santiago Bausili advance with China in an agreement for the expansion of about US$5,000 million. Meanwhile, Economy gave itself free to negotiate the expansion of agricultural trade.
Agricultural mission to China
The Secretary of Agriculture, Fernando Vilella, traveling with a small delegation to Beijing and Shanghai on Thursday, May 30 to hold a meeting there with the GACC (Chinese Customs) and the next day there will be a meeting with Ministry of Agriculture and Rural Affairs.
In these meetings, Vilella will seek to increase the level of trade from Argentina to China in relation to bovine offal and by-products; the export of pork; gallstones and poultry meat.
The Government’s idea is to increase agricultural trade with China taking into account that The bilateral balance is highly unfavorable for Argentina and the Milei administration needs to get dollars from exports as soon as possible.
In this context, last week a reverse business round took place with entrepreneurs of the Chinese market of “Guangzhou Jiangnan Fruit and Vegetable Wholesale Market”in the San Martín Palace.
The activity was organized jointly by the Undersecretary of Promotion of Exports, Investments, Education, Science and Culture of the Foreign Ministry and the Argentine Consulate General in Guangzhou. The Chinese delegation was led by its President, CanJiang Ye and there was talk of expanding Argentine exports in the agricultural sector, taking into account that only in Guangzhou receives 80% of the fruits imported by China annually and has ranked first in sales volume of fruits and vegetables in the People’s Republic of China for the last fifteen years.
The delegation’s visit to our country aimed to find new suppliers of cherries, citrus fruits, fresh fruits, seafood and beef. CanJiang Ye expressed the importance of Argentina as a trading partner and the reputation of Argentine food products.
Swap for the BCRA
In parallel to this, the Government is working on BCRA negotiations to expand the swap draft that expires next June.
Bausili was in China together with Mondino 20 days ago and there he made progress in the dialogue with the Chinese authorities. Chinese People’s Bank to expand the line of Swaps.
In June Almost $3 billion of the swap matures, and the rest must be paid in July. The Minister of Economy, Luis Caputo seeks to initially unlock some US$ 500 million to advance the work of the Santa Cruz dams.
He also managed to ratify that the swap extension that was negotiated during the management of Alberto Fernndez and Sergio Massa will serve to increase the coffers of the BCRA, which in 2023 received a line in yuan equivalent to about US$18.4 billion.
Part of these funds could be used by the Government to pay for imports, debts with private bondholders and the IMF.
Bausili together with Mondino and the finance secretary, Pablo Quirno, who were last April with the head of the People’s Bank of ChinaPan Gongsheng, in Beijing maintained strict confidentiality regarding these negotiations that were now reaching their final point.
