By TAOS TURNER
BUENOS AIRES -- Argentine officials are hopeful that a new currency swap deal with China will bolster confidence in the peso while giving the monetary authority greater power to defend the currency.
"This should boost confidence," said an Argentine Central Bank official who asked for anonymity. "Even if none of this money is ever used, its mere existence should serve to boost confidence in the currency."
The two nations agreed to a three-year currency swap totaling 70 billion yuan, ($10 billion) China's state news agency, Xinhua, reported earlier Monday that Argentina could use the deal to pay for Chinese imports in yuan. But the Central Bank official said the deal's main goal is to restore confidence in the Argentine government's ability to manage the value of the peso.
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