Has Argentina Succumbed to China's Yuan, Or Is It a Minor Setback?
Concerns over China’s Yuan overtaking the U.S. Dollar as the international standard currency has been ongoing for some time. Moreover, many countries have already begun accepting the Chinese national currency for trade purposes. One example is the Argentine company Newsan. The company, which imports most of its products from China, conducted trade using the U.S. Dollar, until now. The firm began using the Yuan last month to relieve pressure on Argentina’s dollar-strapped economy. According to Newsan CEO Luis Galli, the deal was born out of necessity, as “beggars don’t get to choose.” Argentina’s economy is one of the worst affected in the world. Drought has severely affected the nation’s agricultural exports, pushing the economy to the brink of a recession. Moreover, inflation has skyrocketed to record highs. Due to the decreasing availability of U.S. dollars in Argentina, the government stated in April that it would use the Yuan to pay for $1 billion worth of imports from China. ...