The Central Bank of Argentina resorted to paying a large sum to the payment to IMF in the Chinese Yuan in line with ditching US dollar in its transactions.
BRICS member Argentina paid part of the $2.6 billion to the IMF in the Chinese Yuan and not the US dollar, watcher.guru.com reported.
Argentina completed the October payment with IMF’s reserve assets, which is called the special-drawing rights (SDR). In addition, the day-to-day foreign exchange transactions in the Chinese Yuan also rose to 28% in Argentina.
The development indicates that BRICS group of emerging economies are taking the de-dollarization initiatives seriously, the report added.
BRICS is putting forward the Chinese Yuan for trade and other forms of settlements instead of the US dollar. Read here to know how many sectors in the US will be affected if BRICS stops using the dollar for trade.
The Central Bank of Argentina confirmed that China cleared a currency swap line of $6.5 billion, equivalent to 18 billion Yuan. Also, multinational corporations in Argentina, including the US home appliance brand Whirlpool are using the Chinese Yuan for imports.