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Beijing, 1 Apr. China has long sought ways to bypass the US dollar and allow other countries to by their imports directly in yuan. This new $10 billion currency swap with Argentina means that Argentina will have much-needed
Beijing, 1 Apr. China has long sought ways to bypass the US dollar and allow other countries to by their imports directly in yuan. This new $10 billion currency swap with Argentina means that Argentina will have much-needed cash
“It’s unlikely that this new currency will be established anytime soon, but certainly China’s move to swap funds with Argentina will position Asian currencies, specifically China’s, as another standard unit of trade
“More importantly is what this could mean for other Latin American countries should China extend this further across the region. Bilateral trade with the region adds up to USD112bn for which the top three are Brazil, Mexico and Chile,” she continued.
To put this $10 billion swap in perspective, the US Federal Open Market Committee (FOMC) authorized a $330 billion expansion of swap lines in September 2008 resulting in a total of $620 billion.
Chen Xiulian, EconomyWatch.com
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