Photo: Ministerio de Economia de la Nación 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.
Top headline:
Llano, J. C. Estrategias De Inversión. (2023, julio 10). Fin del dólar azul: Argentina y China fortalecen lazos financieros con los yuanes. Brasil y USA se sienten.
Find out more:
fundacionandresbello.org. Ministro de Economía argentino consigue 1.000 millones de dólares en inversiones tras reuniones con empresas en China.