Argentina, one of the largest countries in South America, recently surprised the world public with its decision to settle in Chinese yuan instead of US dollars. It is this move that would help Argentina reduce its dependence on the dollar, as well as facilitate trade with China.
This decision was announced by the President of Argentina, Alberto Fernandezin May 2021, during his visit to China. During a meeting with Chinese President Xi Jinping, Fernandez said Argentina wanted to build a "special deal" with China based on more equal trade.
However, the introduction of the Chinese yuan into domestic circulation in Argentina is a gradual and not easy process. At present, most commercial transactions in Argentina still take place in US dollars, and the introduction of the yuan into circulation requires changes in many laws and reorganization of the banking system.
Still, Argentina's decision to settle in yuan is an important signal to other countries that also want to reduce their dependence on the US dollar. In recent years, many countries, especially in Asia and Africa, have started to look for alternative currencies that can be used for commercial settlements. In this context, the Chinese yuan has gained importance as a potential trading currency.
Argentina, which is one of the largest food producers in the world, has great potential in trade with China. The introduction of the yuan into domestic circulation can help develop new trade channels between Argentina and China, as well as strengthen Argentina's position as an important trading partner for China in the region.
To sum up, Argentina's decision to settle in Chinese yuan is one of the most important events in the global monetary policy in recent years. Despite the difficulties in implementing this plan, Argentina is showing that it is firmly moving towards independence from the US dollar and is looking for alternative solutions in international trade.