Banco Unión, Bolivia’s state-owned bank, has started transacting in Chinese yuan, according to Bolivia’s Minister of Economy, Marcelo Montenegro.
In addition, the government is discussing the potential implementation of a Chinese bank within the country.
Due to an ongoing dollar shortage in Bolivia, the government is exploring other currencies, such as the yuan, for financial transactions.
Although the situation has not fully normalized, there are signs of returning to usual levels, Montenegro shared at a press conference.
Bolivia’s President, Luis Arce, had previously mentioned the possibility of using the yuan for international transactions, attributing the dollar shortage to a global problem.
He suggested this problem was transitory for Bolivia and noted that considerable trade is already happening directly with China, which influences banks to consider operating in yuan.
The issue of dollar scarcity was recently addressed at a meeting between the Bolivian Government and the Association of Private Banks of Bolivia (Asoban).
They highlighted that financial institutions have begun supplying the US currency to various clients, indicating a return to relative normalcy after the challenging period in February and March.
The Economy Minister reiterated that Bolivia currently experiences one of the world’s lowest inflation rates, recorded at 0.8% in June.