Argentina will start to pay for Chinese imports in yuan rather than dollars, the government announced Wednesday, a measure that aims to relieve the country's dwindling dollar reserves. The Economy Minister says the Central Bank is set to save US$1 billion
Source(s):
https://buenosairesherald.com/economics/argentina-to-start-using-yuan-to-pay-for-imports
Highlights:
- Argentina will start to pay for Chinese imports in yuan rather than dollars, the government announced Wednesday, a measure that aims to relieve the country's dwindling dollar reserves.
Economy Minister Sergio Massa announced the start of foreign exchange operations in yuan for importing companies in order to relieve Argentinaโs ailing international reserves.
- According to Massa, the Central Bank is set to save US$1 billion in April and US$790 million as of May.
- โThis will stop weighing on the outflow of our dollars and transfer to the outflow of yuan,โ said Massa during the announcement at the Economy Ministry.
- The yuan available to the Central Bank to carry out this measure come from the fifth disbursement of a currency swap with China โ the announcement means that exchange rate operations have been authorized for the US$ 5 billion from the Peopleโs Bank of China.
- โChina continues to support Argentina in the defense of its economic sovereignty,โ said Massa.
- In April, Brazilโs President Luiz Inacio Lula Da Silva, while on an official visit to China to deepen ties, signaled his intent to move away from US dollar dependency in international trade.
- In January, Argentina and Brazil floated the idea of creating a common currency to use in the region.
