BOLIVIA is now added to the list of countries in South America to shift from using the dollar to yuan currency after reports that the said country is now using yuan to pay for imports and exports.
This makes Bolivia the latest country in South America to adopt the Chinese currency, following in the footsteps of Brazil and Argentina.
The country’s Economy Minister, Marcelo Montenegro, revealed on Thursday, July 27, 2023, that between May and July of this year, Bolivia has conducted financial operations amounting to 278 million Chinese yuan, equivalent to $38.7 million.
He said that their country’s use of the yuan currency is a good start.
Montenegro added that as of now, the amount of yuan being used in Bolivia is still relatively small, but he believes that it will increase over time.
The growing use of the yuan in Latin America and the Caribbean is attributed to China’s increasing footprint in the region through rising trade and investment.
Meanwhile, amid the ongoing dollar liquidity crisis, Bolivia’s President Luis Arce highlighted the need for alternatives, which led the country to embrace the yuan. However, some opposition members have expressed concerns about the move, considering it a short-term solution to cover up economic problems.
To recall, Brazil’s President Luis Inácio Lula da Silva and Argentina’s government have also shown interest in using the yuan for imports and debt repayment, respectively, as a means to preserve their foreign reserves.
