Bolivia’s President Luis Arce said his government is evaluating the possibility of the Andean country starting to use the Chinese yuan instead of the US dollar for foreign trade.
During a meeting with the press, the leftist president pointed out that the use of the yuan would respond to the dollar shortage that exists in the South American country. A situation that is not exclusive to Bolivia, in his opinion, due to the global de-dollarization process.
“There are countries in the world that are facing dollar illiquidity. What Argentina, Brazil, France and Arab countries are doing is no less than that. They decide not to do business in dollars. Many countries before Doing business with China in yuan since then.”
Arce affirmed that the dollar liquidity crisis is a response to the economic control disputes that are being waged between countries such as China, India and Russia, and “old Europe and the United States”.
In this sense, the President ordered the Bolivian Minister of Economy, Marcelo Montenegro, and the Bolivian Central Bank to closely study Brazil and Argentina’s trade agreements with China.
“You have to understand how it’s working for them, and then analyze and evaluate if it’s working for us,” he told Swissinfo.
Arce referred to an agreement between Brazil and China that praised the use of the yuan and its transfer to the US dollar. Also Argentina with the Asian giant, which enables imports to be paid for in renminbi. Both agreements were reviewed by CriptoNoticias.
In the words of the Bolivian president, the economies of Brazil and Argentina, which are among the largest in the world, “are already doing business with the yuan.” So, “that’s going to be the trend in the Latin American region,” in his opinion.
With his remarks, Luis Arce joined the view of some analysts who see a path already paved for “Yuanization” in the Latin American region. This is in contrast to experts who warn that reversing dollarization will not be an easy or quick process, considering Latin American countries’ high dependence on the greenback.