China's Prime Minister Li Keqiang and Chilean President Michelle Bachelet signed a currency swap deal on Monday seeking to deepen economic ties by boosting trade and investment.
The currency swap agreement between Chile's central bank and the People's Bank of China eases the exchange of up to 2.2 trillion pesos (about $3.6 billion) for the next three years. China has signed currency swap deals with several countries and has worked with financial centres to develop international hubs for offshore trading of the currency.
"We want to strengthen our financial co-operation with Chile during this visit, and we have both signed this swap deal," the Chinese premier said during his visit to Chile, the last stop in his four-nation tour of South America, which also included Brazil, Colombia and Peru.
"I hope the Chinese-Chilean co-operation can allow for services and guarantees that can firmly support our co-operation with all of Latin America.
The Chinese premier's first official trip to Latin America comes as the continent feels the pinch of waning Chinese demand for its commodities.
Still, China remains the region's second trading partner and a top trading partner for some nations like Chile, accounting for about 24 per cent of the Andean nation's exports, which include copper, salmon and wine. The two nations also agreed to financial, cultural and scientific accords, and announced that starting July 1, tourist visas to travel between Chile and China will be free of charge as a way to encourage tourism and investment.
During his South American tour, Li agreed to embark on studies for an ambitious railway linking Brazil's Atlantic coast with a Pacific port in Peru, and he announced investments of $53 billion in Brazil over the next six years.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.