Currency swap deal boon for Argentina

Argentina's renewal of a $5 billion currency swap with China, despite opposition from the United States, has given a boost to the country's economic recovery and underscored a financial partnership that continues to "expand out of necessity", analysts say.

The April 10 extension spares Argentina from repaying $5 billion to China this year — a critical relief as it grapples with a severe dollar shortage and persistent inflation. The deal came just a day before the International Monetary Fund approved a new $20 billion bailout package for Argentina.

The currency arrangement, in place since 2009, highlights Beijing's growing economic ties with Buenos Aires, said Alejandro Marco del Pont, an Argentine economist and international relations expert.