Argentina is negotiating an extension of its currency swap agreement with China even as it moves to repay most of the activated funds under the facility by mid-2026, according to statements from the country’s central bank and local media reports.

The remaining balance of the activated portion of the swap has fallen to about $675mn, down from a peak of around $5bn, while officials expect repayment to be completed by the middle of next year, South China Morning Post reported.

Banco Central de la República Argentina president Santiago Bausili said the government was in talks with Chinese authorities to renew the agreement, rejecting speculation that the administration planned to terminate the arrangement when it expires at the end of July.

“We are talking with them to extend it. There are no plans to eliminate it,” Bausili said during a press conference, Ámbito reported.

The swap framework, first signed in 2009 and renewed in 2023, provides a credit line of up to CNY130bn, equivalent to roughly $19bn, though only a portion has been activated by Argentina in recent years to bolster foreign reserves and facilitate trade with China.

According to the central bank’s 2025 financial statements, Argentina owed the equivalent of $3.1bn at the end of 2024. That figure declined to $1bn by late December and then to $675mn by mid-January after accelerated repayments.

The outstanding amount represents only the active tranche, while the broader agreement functions as a contingency line rather than a direct debt obligation. If the framework is not renewed, Argentina would lose access to that liquidity backstop rather than face immediate repayment of the full $19bn.

The issue has become entangled in broader geopolitical tensions between United States and China. SCMP reported that Washington pushed President Javier Milei during 2025 to reduce reliance on Beijing’s financial support as a condition for broader backing.

The report said US officials linked support for Argentina’s international financing efforts to a gradual unwinding of the Chinese credit line, while the US Treasury later signed a separate $20bn swap facility with Argentina’s central bank.

Bausili also said Argentina’s export outlook remained strong, citing market forecasts for record exports of $96bn this year, and downplayed risks from speculative foreign inflows, which he said amounted to between $2bn and $2.5bn.