The de-dollarization push continues.
Argentina announced on Wednesday that it will begin to pay for Chinese imports in yuan instead of dollars.
In response to the nation’s declining dollar reserves, Argentina will aim to pay approximately $1 billion of Chinese goods in yuan this month and then another $790 million a month in yuan moving forward.
More from Reuters:
“The decision comes as the South American nation battles critical levels in its dollar reserves amid a sharp drop in agricultural exports caused by a historic drought, as well as political uncertainty ahead of elections this year.
In November last year, Argentina expanded a currency swap with China by $5 billion, seeking to strengthen Argentina’s international reserves.
The agreement will allow Argentina “to work on the possibility” of advancing the rate of imports, Massa added, with yuan-denominated import orders being authorized in 90 days rather than the standard 180 days.”
This is remarkable to watch unfold. It seems like every other day there is an announcement of a nation ditching the buck in favor of the yuan.
What happens when more countries join the BRICS?
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