Argentina will pay for Chinese imports in yuan instead of USD

Argentina is planning to start paying for Chinese imports in yuan instead of US dollars, according to Business Insider. This decision is due to the depletion of the country’s dollar reserves following a historic drought that dealt a blow to Argentina’s agricultural exports and led to a reduction in currency inflows into the budget.

“After the strongest drought in Argentina’s history, the country must maintain its currency reserves at a high level,” said the country’s Minister of Economy, Sergio Massa.

In April, the country will purchase Chinese imported goods worth around $1 billion in yuan. Afterwards, they hope to pay for shipments of approximately $790 million of monthly imports in Chinese currency.

It is becoming increasingly clear that the dominance of the dollar in global trade and investment flows is facing numerous new threats. This is because more and more countries are developing plans to expand the use of alternative currencies. For example, China and India are insisting on expanding trading operations in non-dollar units, and even Europe appears to be considering de-dollarization.