The economy minister of Argentina, Sergio Massa, announced that starting this month, payments for imports coming from China will be settled using the Chinese yuan. The agreement, which will allow the country to safeguard its dwindling dollar reserves, involves the disbursement of more than $1 billion in April.
Argentina to Settle Bilateral Transactions With China in Chinese Yuan
Argentina, one of the big three economies in Latin America, will use the Chinese yuan to pay for certain imports. According to statements from Argentine Economy Minister Sergio Massa, the country will begin settling payments for Chinese imports using the Chinese yuan, in the context of saving the scarce dollars that the country still has left.
The agreement is perceived by analysts as a positive pact for the nations, as China deepens the penetration and usage of the Chinese yuan in Latam, and Argentina manages to leverage $5 billion of the “swap” reserve that was approved between Argentine President Alfredo Fernandez and Chinese President Xi Jinping, solidified in a bilateral meeting which took place at the 17th G20 summit back in 2022.
China is currently Argentina’s international partner, and this move will ostensibly allow the country to lessen the weight of imports on the weakened state of Argentine reserves. Just for April, there are already $1.07 billion in imports that will be settled with the Chinese yuan, and $0.8 billion are already set to be paid in the same way in May.
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Author: Sergio Goschenko
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