LA PAZ (Reuters) – Bolivia’s authorities is decided to curb dependence on the U.S. greenback for international commerce, as a substitute turning to the , officers mentioned, as Latin American assist for various currencies grows.

Financial system Minister Marcelo Montenegro mentioned the Andean nation was following “a sample on the degree of worldwide commerce, that’s producing a progressive enhance in using the yuan in international commerce,” throughout a press convention on Thursday in La Paz.

Bolivia has confronted months of extreme greenback shortages, pushed partially by falling manufacturing, a key nationwide export. Internet international foreign money reserves have fallen to roughly $4 billion from a peak of $15 billion in 2014, pressuring state funds and threatening Bolivia’s long-defended foreign money peg with the greenback.

“China has turn out to be the world’s largest exporter. And in what foreign money would a big exporter need to obtain the whole lot it produces? Not in {dollars}, however in its personal foreign money,” Montenegro mentioned.

By way of Bolivian state-owned financial institution, Banco Union, importers and exporters have been capable of commerce in yuan since February, and the Russian rouble since March, financial institution officers have mentioned.

Monetary transactions price 278 million Chinese language yuan ($38.7 million) accounted for 10% of Bolivia’s international commerce in Might via July, Montenegro mentioned.

Russia’s ambassador to Bolivia, Mikhail Ledenev, has mentioned that the transactions between Banco Union and Russia’s Gazprombank facilitate “the work of Russian corporations available in the market” regardless of financial sanctions imposed on Moscow by Western nations since 2022.

China and Russia are stepping up investments to develop Bolivia’s big however largely untapped lithium assets to fulfill rising demand for the steel used to make electrical automobile batteries.

Three lithium offers with two Chinese language and one Russian agency had been signed earlier this yr, pledging to speculate a complete of $2.8 billion, which may very well be made partly in yuan, Montenegro mentioned.

The Chinese language foreign money is also used to repay the federal government’s excellent loans from Beijing and enhance commerce integration amongst Latin American nations, the minister added. Brazil and Argentina have additionally made it simpler to commerce in yuan.