Argentina to settle Chinese imports in yuan as China marches into South America to dethrone US dollar
- Argentina will pay for US$1.04 billion of Chinese imports in April in yuan instead of US dollars and then US$790 million per month from May
- The yuan has, according to Bloomberg, surpassed the US dollar for the first time in cross-border transaction in China amid increasing de-dollarisation efforts
China’s push for greater use of its currency in bilateral trade settlements has made further inroads in South America, with Argentina set to follow Brazil and start to pay for Chinese imports in yuan rather than US dollars.
Economy Minister Sergio Massa confirmed on Wednesday that Argentina, following a meeting with Chinese ambassador Zou Xiaoli and companies from various sectors, had “activated the swap with China”.
Argentina will, Massa added, pay for US$1.04 billion of Chinese imports in April in yuan instead of US dollars and then US$790 million per month from May.
The second-largest country in South America is attempting to maintain its reserves of US dollars after a historic drought reduced exports by US$15 billion, including from its key agricultural sector.
China is confident towards the economic and financial stability of Argentina, as well as its future development
“These types of measures give our reserves greater strength and are key to improving the prospects for net reserves, giving us greater freedom and capacity to intervene in the face of those who speculate and overspeculate with the economic situation,” he added on his official Twitter account.