Argentina to pay for China imports in yuan, ditching US dollar

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Argentina to pay for China imports in yuan, ditching US dollar
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Argentina says it will start to pay for Chinese imports in yuan rather than US dollars — a measure that aims to relieve the South American country's dwindling dollar reserves

Argentine Economy Minister Sergio Massa [R] and Chinese Ambassador to Argentina Zou Xiaoli shaking hands after signing an agreement to activate the swap between Argentina and China in Buenos Aires. / Photo: AFP

The South American country will be able to"programme a volume of imports in yuan worth [the equivalent of] more than $1 billion from next month, which will replace the use of Argentina's dollars," said Massa on Wednesday, standing alongside China's ambassador in Buenos Aires, Zou Xiaoli. 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.

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