The Minister of Economy of Argentina, Sergio Massa, spoke about the implementation of a new foreign trade system that will allow companies from the South American country to trade in yuan with China.
The idea has been exposed by the Argentine official during a visit to the Asian giant, noting that the objective is to eliminate obstacles and intermediations to trade between the two countries, preventing merchants from having to use the dollar.
according to what reports the Argentine news agency Télam, “From the exchange in yuan, Argentine companies will be able to enter the single and free exchange market directly for yuan instead of doing it from the CCL dollar or using yuan to buy dollars.”
As announced by the Argentine minister to the companies that make up the Argentine China Chamber of Commerce, in principle the Central Bank of Argentina (BCRA) will enable mechanisms so that procedures can be carried out directly with the Chinese currency without going through the dollar.
The plan has been preceded by other measures, as a Spot Market and a Yuan Futures Market. Announcements were already made about this last April, when the minister said that they would allow payment for imports in Chinese currency.
Other objectives are added to the above. One of them is to maintain the reserves in dollars of the BCRA, avoiding “fraudulent maneuvers that ended up stealing those reserves.” Massa refers with this to the practice of making triangulations towards Uruguay and the North American state of Florida “that result in a scam for the Argentine State”, and that they are willing to face through international litigation.
The details of the plan to trade in yuan will be given on June 2 in Beijing, the city where the minister will hold a meeting with the head of the BRICS Bank, Dilma Rousseff. The group, made up of Brazil, Russia, India, China and South Africa, stands out for being at the forefront of a campaign to advance in global de-dollarization, as CriptoNoticias has reviewed.
Argentina’s goal, as Massa explained, is also to join that process of de-dollarization of economic operations. Initially, from the incentive to use the yuan in foreign trade. A measure that Bolivia and Venezuela also recently raised.