The BCRA and the PBC Renew the Active Tranche of the Currency Swap Agreement until July 2026

The People’s Bank of China (PBC) and the BCRA have renewed today the active tranche of the currency swap agreement for CNY35,000 million (equivalent to USD5,000 million) for 12 months. From then on, the BCRA will gradually reduce the active tranche of the currency swap agreement for the following 12 months. Thus, this tranche will be completely deactivated by mid-2026, on the expiration date of the current currency swap agreement.

The activation of CNY35,000 million in 2023 allowed the BCRA to manage the balance of payments flows at critical times for the domestic economy. The confirmation of this currency swap extension with the PBC reinforces the commitment undertaken by the current BCRA's administration to overcome the external payment crisis, fully observing the contractual obligations previously agreed with all its counterparties.

The extension of the active tranche of the currency swap agreement until July 2026 will allow the BCRA to continue reducing the risks faced in the current economic transition—which began in December 2023—towards a sound and sustainable monetary and exchange rate regime. In this way, the cooperation between the two monetary institutions, which began in 2009, has been renewed, strengthening the financial and economic ties between the two countries.

June 12, 2024