Argentina highlights progress of yuan-based import Operations from China

Argentina’s Secretary of Commerce, Matías Tombolini, has highlighted the progress of yuan-based import operations from China, implemented by the Argentine government since last April.

These operations have reached an approximate equivalent amount of US$2.721 billion.

“Implementing import operations in yuan strengthens our reserves and improves the prospects of net reserves, giving us more freedom and operational capacity to intervene against those who speculate with the economic situation,” Tombolini expressed via his official Twitter account.

Through a graphic, the official reported that payments in yuan for imports of goods from China jointly reached an equivalent of US$2.721 billion in April and May.

This amount represents 19 percent of the total products from abroad, noted by the Secretary of Commerce.

Yesterday, the Central Bank of Argentina (BCRA) highlighted, through a statement, the use of the yuan in trade operations through the existing swap mechanism with China as well as in the financial market.

In the commercial sphere, the monetary entity detailed that the use of renminbi was 1.075 billion yuan in May and 2.045 billion in the first ten rounds of June, “showing rapid acceptance among economic agents.”

Similarly, the BCRA indicated that since the last quarter of 2020, it has been “actively intervening since October 2020, promoting the RMB yuan futures market, which is gaining depth and development in the country.”

The implementation of payments in yuan for imports originating in China was announced in Argentina last April 26 by the Minister of Economy, Sergio Massa.

The measure seeks to improve the prospects of Argentina’s international reserves, maintain the level of economic activity and the volume of imports, and strengthen the trade ties between the two countries.