Argentina Turns to China for Financial Support Amid Economic Woes

Argentina plans to use a $7.5 billion disbursement from the International Monetary Fund (IMF) to repay part of the money it borrowed through a currency swap line with China. The country recently used yuan equivalent to cover repayments from an IMF loan to avoid default. With negative foreign exchange reserves, Argentina is expected to repay $1.7 billion to the People's Bank of China this week. The details of the currency swap line between China and Argentina have remained largely secret. The IMF disbursement will also be used to repay loans from the Development Bank of Latin America and Qatar. Argentina's ability to make future IMF payments and tap the swap line again remains uncertain.