Shock for the USA: Argentina abandons the dollar in its transactions with China!

Another blow will be suffered by the dollar and the American economic hegemony as after Brazil and the second largest economy in South America,

 Argentina will pay for its imports from China in the Chinese currency Yuan instead of dollars.

The decision was announced by the Argentine Minister of Economy, Sergio Massa.

"Following an agreement with various enterprises, the People's Bank of China, and the Central Bank of Argentina, we have restructured the instrument of payment of $1.04 billion this month for imports from China," said Economy Minister Massa, flanked by China's ambassador to Buenos Aires, Zhu Xiaoli.

Mr. Massa added that it would be possible to "schedule a volume of yuan-denominated imports worth (equal to) one billion dollars from next month, which will replace the use of dollars."

Abandoning the dollar in trade with China will "improve Argentina's net (foreign) reserve prospects" and "allow the level of activity, the volume of imports, the pace of trade" between the two countries to be maintained and " the levels of economic operation that Argentina needs," as he revealed.

For his part, Mr. Zhou stressed the importance of this decision to "protect and develop global markets and support businesses to use local currencies to settle transactions."

This announcement comes when the Argentine peso has been experiencing a spectacular new decline against the dollar for days. In the parallel, unofficial market, the exchange rate is approaching 500 pesos to one dollar, while the official exchange rate is at the level of 227:1.

At the end of March, the Brazilian government announced that it had signed an agreement with China that the commercial transactions between the two states would be done in their currencies, the real and the Yuan.

President Luiz Inacio Lula da Silva asked during his visit to China in mid-April, "Why should all countries be obliged to do their transactions in dollars?"

The dollar's decline as a reserve currency in recent years is impressive. After Argentina's decision, from 47% of total reserves, it will fall to 42% compared to 33% for the euro, 6% for the British pound, 5% for the Japanese yen, and just 2% for the Yuan, according to the latest data of the international interbank financial messaging system SWIFT.

To understand the fall of the dollar, it is noted that in 2001 it constituted 71% of world reserves.

This development is significant for the global geopolitical "chessboard" as it comes right after Saudi Arabia and China's agreements on Saudi oil imports and payments in the Chinese Yuan and the Saudi Arabia-Iran rapprochement mediated by Beijing.

And the digital currency is soon to be enforced globally.

@world.war.3.2023