tl;dr
China has suspended Argentina’s $6.5 billion currency swap agreement after the country declined an invitation to join the BRICS economic alliance. Despite the potential economic partnership, the newly elected President of Argentina, Javier Milei, has shown a lack of intention to engage with China, l...
China has suspended Argentina’s $6.5 billion currency swap agreement after the country declined an invitation to join the BRICS economic alliance. Despite the potential economic partnership, the newly elected President of Argentina, Javier Milei, has shown a lack of intention to engage with China, leading to the freeze of the agreement. This comes amid rumors of an expansion plan by the BRICS alliance, which saw six countries receiving invitations, but only five accepting. Despite Chinese officials expressing a commitment to cooperation with Argentina, the rejection of the BRICS invitation and the freeze of the currency swap agreement reflect the shifting dynamics in global economic relations. Following its rejection of a BRICS invitation issued at its 2023 Annual Summit, China has suspended Argentina’s $6.5 billion currency swap agreement. Indeed, Yahoo reports that the freeze will remain in place as long as newly elected Argentine President Javier Milei does not show an intention to “engage” with China. Argentina was one of six countries that was formally invited to be a part of the alliance’s first-ever expansion effort. Amid its rather difficult economic situation, the country saw value in the economic partnership. Yet, a regime change following a presidential election led to the countries declining the offer. Source: CNN Also Read: BRICS: Argentina Says ‘No Benefit’ to Join Alliance
FOLLOWING BRICS REJECTION Sanctions were imposed after the country declined an invitation from the BRICS economic alliance on its comprehensive expansion plan designed at the 2023 Annual Summit, leading China to freeze an existing agreement. The six-country expansion plan would ultimately include Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia come January 1, 2024. While the BRICS alliance did not receive Argentina under Milei's governance, Chinese officials expressed a measure of hope for continued collaboration, affirming that cooperation is centered around mutual advantage. The Argentine administration under Milei's leadership seeks to westernize its economy, serving as the underlying factor in their divergence from BRICS, who seeks to empower developing countries.
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