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China, Argentina sign RMB 70 bln currency swap agreement

Published: 30 Mar 2009 17:16:14 PST

Mar. 31, 2009 (China Knowledge) - China and Argentina have inked an RMB 70 billion worth of currency swap deal on Sunday, the official Xinhua News Agency reported.

The agreement, the biggest ever financial deal between China and a Latin America country, will allow Argentina to use the Chinese currency Renminbi to import goods from China, its second largest trading partner.

The move is expected to stabilize the regional currency system and prevent financial risks amid the deepening global financial crisis. It will also help save the exchange costs for the U.S. dollar, thus boost the bilateral trade.

Since last December, China has signed such currency swap deals with South Korea, Malaysia, the Hong Kong SAR government, Belarus and Indonesia, totaling RMB 580 billion.

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