Argentina is rapidly dismantling its financial lifeline with China as pressure from Washington intensifies.
Reports say President Javier Milei is moving to fully repay the activated portion of Argentina’s currency swap deal with Beijing by mid-2026.
The swap balance reportedly collapsed from nearly $5 billion to just $675 million.
The move comes after growing pressure from the United States over Buenos Aires’ financial ties with China.
The China-Argentina currency swap had become one of Beijing’s most important footholds in Latin America,
helping Argentina survive years of economic instability and foreign reserve shortages.
But Milei has continued shifting Argentina closer toward Washington and Donald Trump.
Despite the repayments,
the broader China-Argentina swap framework still remains massive —
covering up to 130 billion yuan ($19 billion).
Behind the numbers,
a deeper geopolitical battle is unfolding across Latin America.
The US is pushing to reduce China’s financial influence in the region,
while Beijing fights to preserve its strategic economic partnerships.
Source: South China Morning Post