Argentina's use of Chinese yuan is soaring as dollars run short, and a top US manufacturer may join the trend (archive.is)

submitted 1 year ago by yogthos@lemmy.ml to c/worldnews@lemmy.ml

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[-] qwamqwamqwam@sh.itjust.works 7 points 1 year ago

For the record, this has more to do with Argentine financial mismanagement and China’s “expansive” fiscal policy than with the dedollarization that the headline is trying to imply.

[-] pandaconurbano@lemmy.fmhy.ml 7 points 1 year ago

We (I'm from Argentina) have not enough dollars to pay the IMF loan and had a bunch of yuans in reserve China lend us to trade with them, a 'swap' as I heard they call it.

What's worrying is that yuans have a secret loan interest, probably quite a high rate. Don't ask were the IMF loan money went, for sure it wasn't spent on me.

[-] AlbigensianGhoul@lemmygrad.ml 1 points 1 year ago

Brazilian neighbour here, how has this change impacted the old issues with inflation? I remember there always being lots of complaints from colleagues employed over there about that and it also getting exploited a lot by our tourists, but the BRL to ARS exchange rate doesn't seem to have changed much.

[-] gary_host_laptop@lemmy.ml -1 points 1 year ago

There hasn't been a significant change but this took efect weeks ago, so since Argentina has psychological dependance on the dolar we are still kind of tied to that and the economy hasn't seen an effect, but with time it will get better (unless Milei wins, he is a ultra right wing libertarian who wants to make the dolar the natiobal currency, then we fucked).

[-] libscratcher@lemmygrad.ml 5 points 1 year ago

I mean, 10 years ago China would not have been an option, just more IMF loans. Seems to fit the label of dedollarization perfectly.

[-] yogthos@lemmy.ml 0 points 1 year ago

The reality is that US raising rates creates problems for countries like Argentina which makes repaying their foreign debt more expensive. In the end it, the drive for dedollarization is that it provides countries with a way out of the exploitative credit system US created via IMF and the dollar hegemony.

[-] gary_host_laptop@lemmy.ml -1 points 1 year ago

Mismanagement? Fuckk, you yanks fuck us up through the IMF. We are debt trapped in another of the US economic games. It IS related to dedolarisation because the dolar as the internstional currency causes this type of issues in explouted nations. There is a reason why us and my Brasilian brothers are doing it, us being the two biggest economies in Southamerica.