In April, it aims to pay around $1 billion of Chinese imports in yuan instead of dollars and thereafter around $790 million of monthly imports will be paid in yuan, a government statement said. The decision aims to ease the outflow of dollars, Argentina's Economy minister Sergio Massa said during an event following a meeting with the Chinese ambassador, Zou Xiaoli, as well as with companies from various sectors. The decision comes as the South American nation battles critical levels in its dollar reserves amid a sharp drop in agricultural exports caused by a historic drought, as well as political uncertainty ahead of elections this year. In November last year, Argentina expanded a currency swap with China
by $5 billion , seeking to strengthen Argentina's international reserves.
The agreement will allow Argentina "to work on the
possibility" of advancing the rate of imports, Massa added, with
yuan-denominated import orders being authorized in 90 days
rather than the standard 180 days.
(Reporting by Walter Bianchi; Editing by Sarah Morland and
Isabel Woodford and David Gregorio)
