The People’s Bank of China (PBoC) and the Central Bank of Argentina (in Spanish, BCRA) signed a renewal of their bilateral currency swap agreement for a total amount of RMB130 billion (approximately US$13 billion). Unlike previous agreements, the new deal extends the maturity of the swap from three to five years. The activated RMB35 billion tranche (approximately US$5 billion), first drawn at the beginning of 2023, will remain in effect. How the agreement worksThe swap allows the Central Bank to operate under two modalities. In practice, the swap functions as a currency exchange line between the two central banks.