Record breaking use of RMB, foreign media: RMB in Argentina | Argentina | Record breaking
According to Bloomberg News website on June 23, the decrease in the supply of the US dollar in Argentina is prompting businesses to accept another currency, the Chinese yuan. The superior position of the US dollar in global trade is being weakened, especially in developing countries.
This is the Chinese yuan and Argentine peso paper currency captured on April 27th in Buenos Aires, Argentina.
According to reports, in Argentina, with long-term planning facing challenges such as soaring inflation, the renminbi represents a fast and short-term solution. China recently allowed Argentina to use more than half of the $18 billion currency swap quota to support trade between the two countries. The two countries have had a bilateral exchange agreement since 2009. This agreement is considered an insurance policy to strengthen foreign exchange reserves during Argentina's liquidity crisis.
According to reports, Argentine customs agencies have stated that more than 500 Argentine companies have requested payment in Chinese yuan for imported products, including manufacturers of electronic products, automotive parts and textiles, as well as oil and mining companies.
![Record breaking use of RMB, foreign media: RMB in Argentina | Argentina | Record breaking](https://a5qu.com/upload/images/3350e194a4a672f028f1cdac719cc32c.jpg)
According to the Argentine central bank, officials have also approved import payments equivalent to $2.9 billion in Chinese yuan. In the first 10 days of June, the total trading volume of RMB in the Argentine currency market was about 285 million US dollars, which is twice the trading volume in May.
In addition, data from the Argentine Electronic Open Market Company shows that the proportion of RMB transactions in the Argentine foreign exchange market has recently reached a record high of 28% in a single day, compared to 5% last month.