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BEIJING. – Argentina will pay for Chinese imports in renminbi instead of US dollars, the country’s Economy Minister Sergio Massa said on Wednesday in a latest move away from the greenback.
The shift to the yuan in trade with China would bring more “freedom” for Argentina and strengthen its reserves, said Massa at a press conference also attended by Chinese Ambassador Zou Xiaoli.
The move would increase efficiency in clearing transactions and lower exchange costs while ensuring the safety of fund and information flows, said Pang Ming, chief economist for Greater China at JLL.
It is necessary and feasible for major trading nations to use their own currencies for trade settlement in order to reduce dependence on a single major currency, said Pang.
Massa said that Argentina is set to pay for Chinese imported goods worth approximately US$1.04 billion this month with the Chinese currency. And he expects to pay for Chinese imports worth between US$790 million and $1 billion from May onwards in yuan.
Zou, China’s ambassador to Argentina, stressed the importance of currency and financial cooperation between the two countries and encourages companies to use local currencies for bilateral trade and investment.
China and Argentina signed an agreement to expand the currency swap provision in January which will reinforce Argentina’s existing 130-billion-yuan (US$18.8 billion) forex reserves and activate 35 billion yuan (US $5 billion) of disposable quota.
Since the beginning of 2023, de-dollarization has gained momentum with countries adopting various measures to ditch the US currency. – CGTN.com
Online Reporter