A CHINA AND THE SWAP AGREEMENTS WITH ARGENTINA, BRAZIL, CHILE AND SURINAME

Abstract

Bilateral swap agreements gained great importance due to the 2008 crisis and China has been a protagonist in this movement. Argentina, Brazil, Chile and Suriname individually and at different times established such a deal with the Chinese. However, until August 2020, only Argentina, of those countries, had activated the agreement. In this paper, we question which aspects explain the use or not of these agreements with China. Through primary data gathering and bibliographic review, this study states that the swap agreements established with China are important as sources of liquidity in times of external vulnerability for Latin American countries. However, its use is limited due to low convertibility of the Renminbi (RMB).

Keywords

• bilateral swap agreements
• brazil
• china
• argentina
• suriname