In a crisis, Argentina abandons the dollar

The Argentine government issued import payments Chinese in yuan, in an effort to mitigate the effects of the dollar’s appreciation. Sergio Massa, Argentina’s Minister of Economy, announced the measure on Wednesday, the 25th, at a press conference accompanied by the Chinese ambassador. in the countryZhou Xiaoli.

“The worst drought in our history has reduced our exports by $15 billion and put us in front of the challenge of keeping working reserves to support the volume of imports of inputs and commodities for the level of activity and production in the country,” he wrote. . Mass on Twitter In a post about the change.

According to the Minister of Economy, the beginning of the swap of yuan payments to China begins in April. This month, the amount paid in Chinese currency reaches $1 billion. For the month of May, there is already an expectation of US$790 million.

In a note, the Argentine government stated that most of the products imported from the Chinese market are capital goods. “The companies analyzed are mainly from the pharmaceutical, oil, telecommunications and automobile sectors,” he said.

Argentines are facing an economic crisis that has caused the local currency to melt. The government operates with an official price quote that is not supported by reality: 1 US dollar for 220 pesos. In practice, the value is subject to the parallel market, with approximately 500 Argentine pesos required to purchase one dollar.