The dollar shortage forced forced the government of Argentina to make an unprecedented decision, fulfilling a payment obligation with the IMF in Chinese yuan equivalent to one billion US dollars for the first time.
This is the first time Argentina has resorted to the Chinese yuan to pay international obligations.
The Chinese yuan reserve with the government of Argentina was intended to finance imports from the Asian country, but officials had already predicted that it could be used for other purposes.
“The June maturities were paid without using the US dollar but using the Chinese yuan,” the Argentine Ministry of Economy said.
The deal was confirmed by the IMF, as the fund accepted this payment method while negotiations to restructure Argentina’s debt continued.
The Argentine team asked to reformulate the goals agreed with the IMF in 2022 due to the impossibility of achieving them due to the impact of the worst drought the country has experienced in decades.
