De-Dollarization Continues: China-Argentina Agree Currency Swap, Will Trade In Yuan

Tyler Durden's picture


It appears there is another nation on planet Earth that is becoming isolated. One by one, Russia and China appear to be finding allies willing to 'de-dollarize'; and the latest to join this trend is serial-defaulter Argentina. As Reuters reports, China and Argentina's central banks have agreed a multi-billion dollar currency swap operation "to bolster Argentina's foreign reserves" or "pay for Chinese imports with Yuan," as Argentina's USD reserves dwindle. In addition, Argentina claims China supports the nation's plans in the defaulted bondholder dispute.


Having met 'on the sidelines' in Basel, Switzerland in July, Argentine and Chinese central banks agreed to a currency swap equivalent to $11b that Cabinet Chief Jorge Capitanich said could be used to stabilize reserves.. (as Reuters reports)

Argentina, which defaulted on its debt in July, will receive the first tranche of a multi-billion dollar currency swap operation with China's central bank before the end of this year, the South American country's La Nacion newspaper reported on Sunday.


The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation's foreign reserves under intense pressure.


La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina's President Cristina Fernandez and her Chinese counterpart in July.

In adition, Bloomberg reports

People’s Bank of China Governor Zhou Xiaochuan expressed his support for Argentina in its legal fight against holdout bondholders

*  *  *

Isolated, indeed... as China and Russia roam the world making friends with every nation that the US is "involved" with...

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Sun, 09/07/2014 - 18:03 | 5191703 WhackoWarner
WhackoWarner's picture

Yipee. Yahoo.  News is also Argentina pulled any kow-towing to corrupt US vulture funds/courts.  Yippee.

Sun, 09/07/2014 - 18:11 | 5191720 Pladizow
Pladizow's picture

Empires must crumble before they collapse.

Also China is creating the market depth that is required for the Yuan to become a reserve currency.

Sun, 09/07/2014 - 18:14 | 5191747 bigkansas
bigkansas's picture

Ghost cities? Is this the "Depth" your refering too?

Sun, 09/07/2014 - 18:16 | 5191757 0b1knob
0b1knob's picture

< Yuan for Juan?

< Yuan for the money?

Sun, 09/07/2014 - 18:27 | 5191782 Publicus
Publicus's picture

The ghost cities are for WW3 resettlements. They are simply planning ahead, something the West is incapable of.

Sun, 09/07/2014 - 18:47 | 5191834 zaphod
zaphod's picture

I wonder if China will be as nice when Argentina doesn't pay loans back, usually when deadbeats switch lenders the new ones find ways to force repayment....

Sun, 09/07/2014 - 18:50 | 5191860 0b1knob
0b1knob's picture

Damn straight.  Stiff the Chinese and you get a visit from the PLA.

Sun, 09/07/2014 - 18:55 | 5191878 sethstorm
sethstorm's picture

...which is cannon fodder for any civilized (NATO) country.

Sun, 09/07/2014 - 18:59 | 5191884 James_Cole
James_Cole's picture

Right now somewhere in ny one of the top gop donors (and zh contributor to boot) is sweating a bit..

Sun, 09/07/2014 - 20:29 | 5192162 COSMOS
COSMOS's picture

You guys miss the point, the Chinese are spending a little to destroy dollar hegemony and get the USA off its back in Asia.  If they lose money in Argentina its no big deal, its the endgame they are playing.  That endgame is a USA dollar so weak that the USA Navy wont be able to afford to sail across the Pacific.

Sun, 09/07/2014 - 22:08 | 5192408 ILLILLILLI
ILLILLILLI's picture

They could always get out and push...

Mon, 09/08/2014 - 03:48 | 5192798 Elvis the Pelvis
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The Yankee dollar is still king.  And it will remain king for a long long time.  Don't fool yourselves.

Mon, 09/08/2014 - 00:43 | 5192647 Kirk2NCC1701
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They trade Chinese pork for Argentinian beef, using Yuans. 

China "loses" HOW?

Sun, 09/07/2014 - 19:10 | 5191914 TheFourthStooge-ing
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...which is cannon fodder for any civilized (NATO) country.

Just like Afghanistan?

Sun, 09/07/2014 - 20:10 | 5192095 bitterwolf
bitterwolf's picture

wow... scary...what is the PLA gonna do...model...practice at being an army...when is the last time china invaded anyone...fought decisively...wasnt korea..thats why the DMZ is there..its a play army..showcase for street parades and putting down the populace for the party

Sun, 09/07/2014 - 20:30 | 5192153 0b1knob
0b1knob's picture

When was the last time Argentina won a war?   England kicked their ass with one hand behind their back.

With the US the world got NEOcolonialism.   With China the world is going to get some of that ol' time colonialism.   All non-Chinese are scum to the Han.

Mon, 09/08/2014 - 08:04 | 5192990 USisCorrupt
USisCorrupt's picture

For one Argentina can say STFU to the West and their Ponzi paper, and I do hope that Scotland see's this as a BIG PLUS to say STFU to the UK and say HELLO CHINA !

Sun, 09/07/2014 - 18:47 | 5191845 sethstorm
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While ZH is incapable of even saying a good word about the US.

Sun, 09/07/2014 - 18:57 | 5191881 Bangalore Equit...
Bangalore Equity Trader's picture

Oh yea? Listen, I hope all USA slaves have the ability to visit Curry Village, in USA California State park.

Nice place.

Sun, 09/07/2014 - 19:10 | 5191911 James_Cole
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bangalore aka cheap disposable labour for us tech, may they all one day visit Curry Village lol

Sun, 09/07/2014 - 19:45 | 5192021 Bangalore Equit...
Bangalore Equity Trader's picture

Listen, not that it any of your 'merican business but I solo'ed El Cap in 4:46, route: "The Nose" a C2 5.9 rating and 31 fucking pitches.

You? Ah, I understand. Too busy, confined to your fucking easy chair.

Sun, 09/07/2014 - 20:22 | 5192146 messymerry
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Let's give Seth a chance. 

Ok Seth, why don't you enlighten us on why we should be hip hip hooraying for the good 'ol U.S. and the mighty greenback.  Tell us what this the formerly United States of America has done over the last few decades that warrants accolades. 

Tell us quick or you will be consumed by the God of Oblivion. 

Sun, 09/07/2014 - 20:35 | 5192176 Rock On Roger
Rock On Roger's picture

Whoopee doopee, you can climb a hill. Look at me, look at me!


What do you do that it useful for society?


Sun, 09/07/2014 - 20:51 | 5192216 Bangalore Equit...
Bangalore Equity Trader's picture

Listen, I worship the USA Rockefeller's every day. And as of late I drop to my knees and light a candle at my "OBAMA SHRINE", and say a Nobel-Keynesian prayer for the "World Order"!

Mon, 09/08/2014 - 07:26 | 5192955 No Quarter
No Quarter's picture

Do you have any idea the level of physical fitness, skill and mental endurance is required to accend El Cap solo? Its an impressive accomplishment. I don't know what else the guy can do but someone that has the mental and physical capacity to do that is not likely a complete dumb-ass. Just sayin'.

Sun, 09/07/2014 - 19:04 | 5191894 LetThemEatRand
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"While ZH is incapable of even saying a good word about the US."

That's not the problem.  It is the cheering of other, equally bad or in many cases even more corrupt regimes that is the problem.  The NWO types want disarray, a breakdown of national borders, and the ushering in of a new currency.  So rah, rah'ing every other corrupt fascist regime that supposedly flips off the U.S. corrupt fascist regime is cheering on our own destruction.  What these countries are really doing is flipping off the American people in favor of the oligarchs who control all of the fascist regimes. 

Sun, 09/07/2014 - 19:32 | 5191982 kaiserhoff
kaiserhoff's picture

I think both are a problem Rand, but on the whole, I agree.  Those trashing the US should take a good hard look at the alternatives.  There are plenty of real dictatorships out there, and too few friendlies.

Sun, 09/07/2014 - 20:00 | 5192056 sleigher
sleigher's picture

Cheering for the enemy in terms of seeing the home team destruction is not the same as cheering for the enemy to come take over.  I tend to cheer for the opposition only because I have hope of a better tomorrow by real Americans standing up and making it happen.  


You can call me an idiot if you want.  How else do you think we can see a better tomorrow in the US?  Voting?

Sun, 09/07/2014 - 20:23 | 5192139 kaiserhoff
kaiserhoff's picture

Good question.  I think government tyranny has passed a tipping point.  Some sort of confrontation is inevitable, but it's important to clearly identify friend or foe.

I think the real split is between producers and parasites, although all sorts of racial, ethnic, and regional crap will get in the way.  One of the deepest divides is urban versus rural.  You're not an idiot, but the solution will not come from outside.  You are asking the right questions, and I think you will find more allies than you expect, often in unexpected quarters.

Sun, 09/07/2014 - 20:33 | 5192169 sleigher
sleigher's picture

You can say that again.  (tyranny)  When the leadership is saying things like the founders of this nation would not be welcome in todays military, well, think about that for a second.  The founders of the nation are no longer welcome in the nation they founded.  Who exactly is the enemy?  I don't want to live in Russia or China.  I want to live in the American Republic.  That fabled land we heard about in elementary school.  It isn't even about me really, it is about my kids.


As for producers and parasites, I tend to believe that if the ball started rolling in the right direction, those problems would sort themselves out.  Although I don't kid myself about how many bulldozers would be needed to bury the bodies.

Sun, 09/07/2014 - 19:16 | 5191927 TheFourthStooge-ing
TheFourthStooge-ing's picture


While ZH is incapable of even saying a good word about the US.

Such as?

Seriously, what has the US done this year that you would consider good or right or moral?


Sun, 09/07/2014 - 19:19 | 5191940 Freddie
Freddie's picture

Nothing good to say about Obama AIPAC-USA.   Americans are idiots addicted to O-TV and O-Hollywood.  Your viewership keeps you a slave so keep watching.

Sun, 09/07/2014 - 22:38 | 5192477 ndree
ndree's picture

A good word just to comfort and reassure you? Unfortunately the US has debased itself to the level of a cesspit...nothing good to report on anymore, only nauseous odors. I am sure most of the critics are heart broken about this... but truth and conscience should prevail. Will i sell my soul to Satan simply because he invites me to dinner from time to time? hell no, if i know he's a drug dealer or pedophile, i'll definitely be informing the cops!

Mon, 09/08/2014 - 01:16 | 5192674 Kirk2NCC1701
Kirk2NCC1701's picture

@sethstorm: "While ZH is incapable of even saying a good word about the US."

Do you have ADD, suffer from Selective Amnesia or are you a Troll?  The reason I ask is, because this site on going on CONSTANTLY about:

   - The Fantastic Declaration of Independence

   - The Constitution - we used to adhere to in Congress, Executive branch and Supreme Court

   - The Bill of Rights - we used to adhere to

   - The Four Freedoms - we used to adhere to

   - Honest Money  - we USED to have and can have again

   - Values of Self-Reliance and sense of Community... we used to have

   - Safe streets and neighborhoods... we used to have

   - Real Capitalism - where companies and banks were allowed to fail

   - Anti-Trust laws - we used to use to break up destructive monopolies

   - Declaration of War was made by Congress, not by Executive fiat, using weasel word in place of "war"

   - Citizen Privacy we used to have

   - When getting on a plane was almost like getting on a bus: Fast & Easy!

   - When banks didn't ask "50 questions" about your money

   - When cops looked and acted like cops, not like the Seal Team 6

   - When a drone was a male bee, not an obscenity out of a Terminator movie

   - When we used to think that the FBI were the Good Guys, and the CIA was 'cool'

   - When no one heard of the NSA, because they were just some DOD guys listening in on Commie comms

   - When we use hundreds of thousands in jails, not millions

   - When the President was accountable, to the point where he could get his sorry ass impeached

   - When we used to have an Immigration Dept and a process that actually sort of worked

   - When we had health insurance or an education we could afford, without bankrupting ourselves

   - When we had jobs where Dad was the sole bread winner, and Mom worked for extra money

   - When you could retire at 65 and not live on dog food

   - When Israel was a foreign country, not the Overlord of our Foreign Policy or our President


Are you seeing a pattern here, or shall I continue?  Shall I type slower, so you can keep up?

The point is.. somewhere along the line (while we were working, playing, or sleeping) the MFers hijacked/stole our Government -- and WE WANT IT BACK!

Mon, 09/08/2014 - 09:17 | 5193147 FEDbuster
FEDbuster's picture



Sun, 09/07/2014 - 18:54 | 5191877 Bangalore Equit...
Bangalore Equity Trader's picture

Listen, and listen well! If your hopes and dreams are invested into the US Do-lar then you are a fool.

Let me be clear, "ZEROHEDGE" is the leading innovator for all currency news! Get it!? If you are pro-USADollar then you are like the USA Africans. Fools being used by your captors.

Yea, yeea, my brother. If you think the do-lar is here to stay and will not collapse in value you will soon discover your USA-RDA of nutrition in the dirt that you will be sleeping in. Eat well my 'merican friends.

If you don't "DO THE BITCOIN" then you will greatly regret this ominous warning.

Sun, 09/07/2014 - 21:08 | 5192280 LetThemEatRand
LetThemEatRand's picture

I'm kind of over the back and forth thing here, but I'll comment just for the sake of old times.  I don't believe the dollar is here and here to stay.  Quite the opposite.  The dollar has been debased -- intentionally -- by those seeking world domination.   The Fed works in dollars, but it is controlled by those who could give a flying fuck about the dollar.  Thus, its policies.   ZH is indeed on the cutting edge of reporting on the coming demise of the dollar.  Unfortunately, I'm no longer convinced that I agree with what the Tylers believe is the real cause, or the solution.

Mon, 09/08/2014 - 09:17 | 5192566 FEDbuster
FEDbuster's picture

Having just finished the first four episodes of season eight of "The Trailer Park Boys" (thank you Netflixs), I am looking to move all my net worth into Ricky's "Hash Coins".  This could become the new World's Reserve Currency. 

From episode one titled "Money can suck my cock":

Sun, 09/07/2014 - 18:35 | 5191807 WOAR
WOAR's picture

< Yuan for my baby?

Mon, 09/08/2014 - 00:40 | 5192642 Kirk2NCC1701
Kirk2NCC1701's picture

Yuan for the money, Two for the show... Don't step on my Blue Suede shoes.

Mon, 09/08/2014 - 01:57 | 5192742 gallistic
gallistic's picture

Three to get'a ready now go cat, go!

Sun, 09/07/2014 - 18:18 | 5191761 Bossman1967
Bossman1967's picture

those cities are for the Americans that are leaving so they feel like home. I talk to a lot of people saying they are leaving but those of us caught in 08 can't get out of this shit we call a country . sad to say I am ashamed of all the debt we have run up and will never pay back

Sun, 09/07/2014 - 18:24 | 5191768 kaiserhoff
kaiserhoff's picture

Agreed.  This is a nothing burger.

The Yuan is still pegged to the dollar, within a narrow band.  When and if China has a real currency which can stand on it's own, this may be an issue.  Much of the apparent strength of the yen is simply due to the fact that no one trusts China, or their complete bull shit financial data.

Sun, 09/07/2014 - 18:59 | 5191886 Gromit
Gromit's picture

"Strength of the yen" ? 

Against the Peso ARS yes but not against much else.

Sun, 09/07/2014 - 19:27 | 5191968 kaiserhoff
kaiserhoff's picture

It still has purchasing power when it shouldn't.  That's the point.  Even in comparison with other fiats, the yen sucks.

Sun, 09/07/2014 - 23:38 | 5192562 matrix2012
matrix2012's picture

kaiserhoff, You're damned right!!

The yen sucks as much as the "a bug in search of a windshield"

Sun, 09/07/2014 - 18:23 | 5191774 WhackoWarner
WhackoWarner's picture

Kind of akin to "ghost inflations stats?"  or maybe "ghost unemployment stats?"  or "transperent government?"  or how's about "equal rights?" or let's go back to "weapons of mass destructions?"  or maybe we can go to "exceptionalism???"  or let's take a walk through ghetto Detroit  ot let's take one peek at the real and actual "homelessness USA??'


Sun, 09/07/2014 - 18:37 | 5191812 WhackoWarner
WhackoWarner's picture

Be very careful in your concept of "ghost"


So many "ghost" appearances.  Like maybe "ghost" bank balance accounting?  Or "ghost" assests?  Or "ghost" reforms?  or maybe "ghost" Main Street stimulus?


What depth are we speaking of?  Depth of debt?  The depth of truth?  Depth of deception and lies?

Sun, 09/07/2014 - 18:53 | 5191869 sethstorm
sethstorm's picture

Empires must crumble before they collapse.

That applies moreso to China and Russia than anyone else.

Sun, 09/07/2014 - 18:58 | 5191882 OC Sure
OC Sure's picture

Today is Mooncake day in China. Crumbles for all.

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