The Argentine government will pay 7% annual interest payment by China to strengthen their monetary reserves

The reserves of the Central Bank of Argentina closed the week at u $ s 28.268 million, and did not fall over because they would have posted a $ 700 million arrivals from China under the bilateral agreement.

Argentina should enable the conversion or currency swap with China to strengthen reserves, preferring to pay a higher annual interest rate of 7% for the central bank to remain above the 28,000 million dollars. Reserves closed the week at $ 28,268,000 s, and did not fall because they have posted over 700 million arrivals from China in yuan, under the bilateral agreement, since Argentina had imported fuels and maturities debt by more than $ 150 million.

 The first disbursement of currency conversion agreement signed last July between the Central Bank and the People's Bank of China and were recorded this week in the stock of reserves. It happened on Tuesday, when stocks stopped falling despite the adverse scenario in the exchange market led blue dollar to 15.10 pesos.

 Although the Central Bank made ​​payments to international organizations and disbursements for energy imports by 150 million dollars, to which were added 50 million in wholesale sales, reserves increased by eight million in the week. Thus, the arrival of the first yuan swap only allowed to hold the stocks, and not increase.

All at the cost of further deteriorating the equity of the BCRA, which pay high interest in dollars. The swap with the People's Bank of China could reach 11,000 million dollars, and the BCRA, Juan Carlos Fabrega, shall administer to allow Cristina Kirchner finish his term without major upheavals. The currency swap involves the simultaneous purchase of one currency for another, the future commitment to reverse the operation in twelve months at a rate of between 6 and 7 percent, and compensate for price differences.

 The arrival of silver from China oxygenates reserves while backing the settlement of grain exporters, who took a third the usual foreign income at this time.