/ world today news/ On June 30, Argentina used the special rights of circulation and settlement in yuan to pay off its external debt of 2.7 billion US dollars owed on that date to the International Monetary Fund (IMF). It was the first time the country used yuan to cover its foreign debt. A day earlier, Argentina’s central bank announced it was including the Chinese yuan as an accessible currency in the country’s banking system and allowed financial institutions to open yuan savings accounts. In addition, as an unprecedented case, yuan was allowed to be deposited and withdrawn in the country’s banking system, as well as used for bond transactions. All this had an extremely profound impact.
China is currently one of Argentina’s most important trading partners. In 2022, bilateral trade exceeded US$20 billion for the first time and reached US$21.37 billion. Argentina has been plagued by problems with its external debt for a long time, which is an integral part of the hegemony of the US dollar. Like many other Latin American countries, it also suffered from the wayward currency policy of the United States. In 2016, the US dollar continued to appreciate, causing severe capital outflows from Argentina and devaluing the Argentine currency. In desperation, the Argentine government had to borrow money from the IMF, but this was like opening Pandora’s box and plunged the country into deep debt. Reducing dependence on the US dollar is an important step for Argentina in breaking the hegemony of the US dollar. It also reflects the desire of many developing countries to achieve financial diversification and take the path of self-development. A Spanish newspaper predicted that the global dominance and hegemony of the US dollar is not unshakable.
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