Argentina will start paying for imports from China in yuan rather than US dollars, and the government announced a move to preserve the country’s dwindling dollar reserves.
The Argentine government aims to pay about $1 billion of Chinese imports in yuan in April, and after that, about $790 million of monthly imports in yuan.
This move aims to ease the outflow of dollars, said Argentine Economy Minister Sergio Massa after a meeting with Chinese Ambassador Zu Xiaoli and companies from various sectors, writes Reuters.
The decision arrives as the South American nation wrestles with a critical level of its dollar reserves amid an alacritous drop in agricultural exports pushed by a historic drought and political tension ahead of elections this year.
In November last year, Argentina expanded its currency swap with China by five billion dollars to bolster Argentina’s international reserves.
Massa added that the agreement would allow Argentina to “work on opportunities” to improve the import rate, with the approval of yuan import orders in 90 days rather than the standard 180 days.
China Focused on Economic Recovery
Prime Minister Li Qiang said that China wants to open up the world’s second-largest economy and make reforms to boost growth, adding that geopolitical tensions will only slow down global development.
With these comments, Li again called on Beijing at an international business summit on Hainan Island to take steps for the country’s economic recovery, whose ties with the United States and its allies have become strained for some reasons — from the war in Ukraine to technology exports and Taiwan.
