Bolivian Central Bank Adopts Chinese Yuan in Response to Dollar Crunch
Bolivia’s Economy Minister, Marcelo Montenegro, confirmed that the Bolivian Central Bank is using the Chinese yuan for some of its international transactions.
This move comes in response to the dollar scarcity the country is facing, leading them to pass a law to sell part of their gold reserves for U.S. dollars. While Chinese banks are not currently present in Bolivia, having a branch in the country could expedite the adoption of the yuan for such transactions. China and Bolivia are actively working to bring Chinese banks to Bolivia to act as intermediaries. Bolivia’s President, Luis Alberto Arce, has been advocating for de-dollarization in the region and promoting new partnerships with countries like China.
Other Latin American countries, such as Brazil and Argentina, have also taken steps to integrate the Chinese yuan into their financial systems. Brazil established a bilateral trade deal with China using national currencies, while Argentina allows importers to settle transactions with China using the yuan.
Clever Robot News Desk 1st August 2023
