Currency Clashes: China and the US Duel Over Argentina's Economic Lifeline

The United States and China are at odds over a currency swap deal between China and Argentina, which provides economic support to Argentina amid dwindling reserves. U.S. envoy Mauricio Claver-Carone describes the arrangement as 'extortion,' while China defends it as beneficial for Argentina's economy.

The United States and China find themselves at loggerheads over a significant currency swap deal involving Argentina, a financial lifeline for the South American nation.

U.S. Special Envoy Mauricio Claver-Carone lashed out at the $18 billion currency swap deal during a recent talk in Miami, labeling it as 'extortion' by China. Chinese officials responded firmly, accusing the U.S. of attempting to sow discord in Latin American alliances.

As Argentina seeks new financial support from the International Monetary Fund, the tensions between major global economies put President Javier Milei in a difficult position as he navigates relationships with both his White House ally and China, a major trade partner.

(With inputs from agencies.)