Argentina govt to pay for Chinese imports in yuan rather than dollars

Buenos Aires: Argentina’s Economy Minister Sergio Massa on Wednesday said that the country will pay for Chinese imports in yuan instead of dollars in order to preserve its international reserves. During an event following a meeting with the Chinese ambassador, Zou Xiaoli, as well as with companies from various sectors, Massa said, “The South American country will be able to program 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.” The decision aims to ease the outflow of dollars, added Massa. In April, Argentina aims to pay around $1 billion of Chinese imports in yuan instead of dollars and thereafter around $790 million of monthly imports will be paid in yuan, a government statement said. 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. In November last year, Argentina expanded a currency swap with China by US$5 billion, seeking to strengthen Argentina’s international reserves. The agreement will allow Argentina “to work on the possibility” of advancing the rate of imports, Massa added, with yuan-denominated import orders being authorized in 90 days rather than the standard 180 days. With inputs from agencies Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.