Slight growth in Argentina’s economy with China as its main ally

Photo: Ministerio de Economia de la Naci贸n Argentina. By: Sking. Source: Wikicommons.

Amidst the scarcity of dollars, Argentina is exploring alternatives to pay for imports. One of these solutions involves reaching an agreement with China to pay for technological components in yuan. This move aims to avoid shortages of parts for the Argentine industry and also extends China’s influence in Latin America. Argentina has been using a portion of its reserves in yuan to repay its debt to the IMF, signaling its intention to de-dollarize its economy. “Argentina is taking steps towards de-dollarization despite some electoral proposals advocating for the imposition of the dollar as the legal tender in the country” (Llanos J.C, 2023).

Despite facing economic difficulties, the South American country is experiencing slight growth and has a currency exchange agreement with China, thanks to these deals. While Argentina still encounters economic challenges, the renewed currency exchange agreement with China has provided an encouraging outlook for its financial future. With access to yuan, the country has the opportunity to leverage new possibilities and foster a closer relationship with one of the world’s major economies, while diversifying its assets and seeking to solidify its position on the international stage.

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Llano, J. C. Estrategias De Inversi贸n. (2023, julio 10). Fin del d贸lar azul: Argentina y China fortalecen lazos financieros con los yuanes. Brasil y USA se sienten.

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