Sunday, June 4, 2023

Bolivia will analyze the use of the yuan for external transactions in the absence of dollars

Bolivian President, Luis Arcereported this Wednesday that his government is analyzing the possibility of using the yuan to carry out international transactions in the absence of Dollars which, he said, is a global problem and is “transitory” in the Bolivian case.

In a meeting with some informants, Arce maintained that “in the world there are several countries that are going through problems of illiquidity in dollars”, which led some to decide “not to trade” in that currency.

Yes ok Latin America has had “always a great influence from the United States”, currently “many countries have more foreign trade with China” than with the North American country and that is why they are beginning to talk about avoiding the dollar and operating in yuan, he asserted.

Arce gave as an example the steps taken by the Government of Luiz Inácio Lula da Silva for Brazil to carry out operations between the real and the yuan, excluding the dollar as a reference for exchange in transactions, and indicated that Argentina follows the same path.

The two largest economies in the region are already trading in yuan in agreements with China. And the region’s trend is going to be that,” he said.

In his opinion, Bolivia cannot “stay out of what is happening”for which he instructed his Minister of Economy, Marcelo Montenegro, and the Central Bank of Bolivia (BCB) to “look at what Argentina and Brazil are doing because you have to understand how it is working for them, and analyze and evaluate if it works for them.” we”.

Arce assured that in the Bolivian financial system “there are many credits” and “a lot of trade that is already being done directly with China”, which is motivating banks to want to “operate in yuan”.

The president insisted that this “quite large component of trade with China” to see the possibility of transacting directly in yuan without the need to operate in dollars.

For the Bolivian president, the lack of dollars in the world is due to a “quarrel for control of the world economy” between the “bloc led by China, Russia, India” and “old Europe and the United States”.

According to Arce, “countries that do not have certainty where is this going to end” they chose to protect themselves in gold, which is “the only currency that is not a liability for anyone”.

The ruler remarked that before these changes“we must look very carefully at the issue of the dollar” in Bolivia and insisted that the problem of illiquidity is “transitory” and that the Bolivian economy “is fine.”

Arce referred to the issue when he received some journalists and news presenters, many of them from state media, at the Government House in La Paz, on the occasion of the Day of the Bolivian Journalist that is commemorated on this day.

At the meeting, the president also repeated some figures given the day before in a message halfway through his term.


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