© Reuters. Chinese language Yuan and U.S. greenback banknotes are seen on this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration
BUENOS AIRES (Reuters) -Argentina will begin to pay for Chinese language imports in yuan quite than {dollars}, the federal government introduced Wednesday, a measure that goals to alleviate the nation’s dwindling greenback reserves.
In April, it goals to pay round $1 billion of Chinese language imports in yuan as a substitute of {dollars} and thereafter round $790 million of month-to-month imports can be paid in yuan, a authorities assertion stated.
The choice goals to ease the outflow of {dollars}, Argentina’s Economic system minister Sergio Massa stated throughout an occasion following a gathering with the Chinese language ambassador, Zou Xiaoli, in addition to with corporations from varied sectors.
The choice comes because the South American nation battles vital ranges in its greenback reserves amid a pointy drop in agricultural exports attributable to a historic drought, in addition to political uncertainty forward of elections this yr.
In November final yr, Argentina expanded a foreign money swap with China by $5 billion , in search of to strengthen Argentina’s worldwide reserves.
The settlement will enable Argentina “to work on the chance” of advancing the speed of imports, Massa added, with yuan-denominated import orders being licensed in 90 days quite than the usual 180 days.
