Argentina slams the dollar to the yuan
Since the beginning of the month, Buenos Aires has abandoned the green note and opted for the yuan to pay its Chinese imports.
Argentina announced last week that it would now favour the yuan, not the dollar, to settle its imports from China. The Argentine Government believes that this decision, which took effect at the beginning of May, should favour the country's economy. That is, currently 22% of Buenos Aires imports come from China.
This announcement occurred while the Argentine peso suffered a fairly substantial erosion compared to the dollar (20% of its value in a week).
The Andean country follows the steps of its Brazilian neighbour. In March, Brazil had concluded an agreement with China to conduct all trade in its own currencies, reais and yuan.
For several years Beijing, Washington's great rival, has sought to internationalize its motto. But the latest data from the Swift international payment system indicate that the dollar still accounts for 42% of the currencies used in international trade ahead of the euro with 33%. The UK pound weighs 6%, the Japanese yen 5% and the Chinese yuan 2%.
Source(s): The Echoes
Editor(s): C. BEDOUIN