By News Room
“Argentina has a currency exchange with China, which works not only as a tool to build up reserves, but also as a financial and commercial tool,” Economy Minister Sergio Massa said during a meeting. with Chinese Ambassador Zou Xiaoli. According to the president of the Central Bank of Argentina, Miguel Pesce, who also attended the meeting, from May this year the yuan will replace the equivalent of about 800 million dollars per month on average.
In addition, Minister Massa pointed out that the transition to the yuan will avoid the increase in the added value of goods en route to Argentina. “It is a guarantee that Argentine producers will use raw materials and goods from China, avoiding the unscrupulous profits of resellers,” the head of the Ministry of Economy stressed. He said he is confident that the new settlement program will also speed up the import of a wide range of goods for various types of industries, which are the engine of the country’s economy.
Local experts expect that the active use of the swap on imports from China by Argentines will allow Argentines to save US dollars, which will be accumulated by the country’s central bank. American currency is needed in Buenos Aires not only to solve internal problems, but also to settle the multi-billion dollar public debt with the International Monetary Fund. Recall that last month, Brazil and China reached an agreement to stop using the US currency for all types of bilateral trade.
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Source: Argentina switches to the yuan News
Category: News, World, China
