- Nov 4, 2011
Citing Argentina and Brazil, Bolivia says open to use China's yuanPresident Luis Arce says Bolivia cannot afford to stay on the sidelines as some South American countries trade in Chinese currency.
Luis Arce says trading in yuan "is going to be the trend in the region." [File] / Photo: Reuters Archive
Bolivia's president has expressed openness to the use of the Chinese yuan for international trade during a press conference, citing similar moves by Argentina and Brazil to tap the Asian currency for transactions with China.
International trade transactions tend to be priced in US dollars, especially for major commodity markets like energy and grains, going back decades.
"The two largest economies in the region are already trading in yuan in agreements with China, and that is going to be the trend in the region," Luis Arce said on Wednesday, adding the South American country could not afford to stay on the sidelines.
"In Latin America, we have always had a great influence from the United States ... but today many countries have more foreign trade with China. Things are changing."
The Argentine government announced last month it will start to pay for Chinese imports in yuan rather than US dollars, in large part to safeguard the central bank's dwindling dollar reserves needed to pay down debt as well as to finance imports.
Earlier in the year, China and Brazil moved to reduce the dominance of the greenback by signing a deal to set up yuan-clearing arrangements that can facilitate bilateral trade.
"Why should every country have to be tied to the dollar for trade?... Who decided the dollar would be the [world's] currency?" Brazil's leader Luiz Inacio Lula da Silva had said.