Argentina replaces the dollar with the yuan as the currency for exchange with China
The Minister of Economy of Argentina, Sergio Massa, and the Chinese Ambassador to the country, Zou Xiaoli, announced that imports of intermediate goods from China will be paid in yuan through the “swap” agreement between the two countries. This measure, which will take effect this month, is intended to maintain economic activity while protecting the international reserves of the Argentine Central Bank amid a currency crisis. It is worth noting that Argentine companies will pay for imports with a value of $1.07 billion in yuan in April, and operations worth $790 million are scheduled for the following month.
In this regard, the expansion of the “swap” agreement signed last November between Argentina and China will allow the replacement of currencies and allow the South American country to have the equivalent of $5 billion as reserves available for use. This will also increase China’s share in the gross international reserves of the Argentine Central Bank to 48%.
Top headline:
El País. Centenera, M. (2023, 26 de abril). Argentina reemplaza el dólar por el yuan en su comercio bilateral con China.
Find out more:
Diario del Pueblo Digital. Xinhua. (2023, 28 de abril). Argentina pagará en yuanes importaciones desde China.