In a talk at Miami Dade College late last week U.S. Special Envoy for Latin America Mauricio Claver-Carone slammed the long-standing $18 billion swap line as amounting to “extortion” by China and said Washington wanted to see it ended.
“Fair-minded people are able to tell who is extorting and coercing others and making trouble,“ he said in response to a question about Claver-Carone’s comments.
China, the world's No. 2 economy that is facing a major trade war standoff with U.S. President Donald Trump, has a long-term swap agreement with Argentina, a serial defaulter that has been firefighting a sliding currency and dwindling foreign currency reserves for years.
Argentina and China last year renewed the activated part of the currency swap through July 2026, which helped to defuse fears over a payment crunch. The central bank did say then it would gradually ramp that down to zero by mid-2026.
“What we would like to see, eventually, is the end of the famous line of credit Argentina has with China,“ he said. “That line of credit is extortionate, and as long as they maintain that line of credit, China will always be able to extort.”
He did not give details about how the currency swap was extortionate, though the United States has long warned about what it calls Chinese debt diplomacy in Latin America. China says it offers tangible trade and investment to the region.
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