Argentina, grappling with a looming recession and severe drought, is reportedly depleting its liquid FX reserves, leaving its central bank in a precarious position. The country’s liabilities in foreign currency now exceed total reserves by about USD 1 bln. In response, officials have explored various emergency measures, including boosting bilateral trade with Brazil, and utilizing a credit swap with China. Concerns are growing about the country’s ability to prevent a total peso collapse, which could further stoke inflation and social unrest ahead of the upcoming presidential elections.