Argentina To Pay for Imports in Chinese Yuan, Ditching US Dollar

Chinese Yuan Replaces US Dollar as the Most Traded Currency in Russia
Source: Bloomberg

According to a Wednesday announcement by the government, Argentina will start to pay for Chinese imports in Chinese Yuan rather than dollars.

The decision aims to ease the outflow of dollars, Argentina’s Economy minister Sergio Massa said during an event following a meeting with the Chinese ambassador, Zou Xiaoli, as well as with companies from various sectors.

Argentina is battling critical levels in its US dollar reserve. This is after a sharp drop in agricultural exports caused by a historic drought. Political uncertainty ahead of elections this year are also impacting these levels .

Argentina Chinese Yuan replaces US Dollar
Source: WIRED

In April, it aims to pay around $1 billion of Chinese imports in yuan instead of dollars. Thereafter, around $790 million of monthly imports will be paid in yuan, a government statement says.

Earlier today, the Chinese Yuan surpassed USD in Chinese cross-border transactions.