Chinese ambassador in Bolivia announces plans to open Asian bank branches due to lack of dollars

Photo: Chinese Bank of China. By: epSos.de. Source: WikiCommons.

To address the shortage of dollars in Bolivia, China is exploring the possibility of opening branches of Asian banks in the country. Huang Yazhong, the Chinese ambassador in Bolivia, has stated that efforts are underway to establish Chinese banking entities in Bolivia, primarily to facilitate settlement operations in bilateral trade. Given the significance of China as Bolivia’s trading partner and the limited availability of dollars, the Bolivian government is interested in coordinating with China to explore the option of conducting transactions in local currencies. Although there are some technical issues that need to be resolved, the opening of Chinese commercial banks in Bolivia is expected to happen as soon as possible. Furthermore, the Bolivian government has already considered the use of the yuan in trade with China.

The Chinese ambassador highlighted that, unlike Argentina and Brazil, which already have branches of major Chinese banks, Bolivia faces certain technical challenges that need to be addressed. Nevertheless, Bolivian traders and businessmen have shown interest in conducting transactions in local currencies. This initiative is designed to mitigate the difficulties caused by the shortage of dollars and enhance bilateral trade between Bolivia and China.

Top headline:

Opinión Bolivia. (2023, Mayo 31). China trabaja para que bancos asiáticos abran sucursales en Bolivia ante falta de dólares.