The government said Wednesday that Argentina would pay for Chinese imports in yuan instead of dollars to boost its currency reserves.
According to a government announcement, it will pay $1 billion in Chinese imports in April and $790 million in monthly imports in yuan.
After meeting with the Chinese ambassador, Zou Xiaoli, and several enterprises, Argentina’s economy minister Sergio Massa claimed that the move would reduce dollar outflow.
The decision comes as the South American nation faces crucial currency reserves, a dramatic reduction in agricultural exports due to a severe drought, and political instability ahead of elections this year.
In November, Argentina increased its currency swap with China by $5 billion to boost its reserves.
Massa said the deal would allow Argentina “to work on the possibility” of accelerating imports by authorizing yuan-denominated import orders in 90 days instead of 180 days.
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