A serious shortage of US dollars in Argentina has taken a new turn. This time, amid the lack of dollars in its central bank’s currency reserves, the local government had to make its debt payments to the International Monetary Fund (IMF) in the Chinese yuan. This trend has nothing to do with de-dollarization as some might think. On the contrary, it indicates a deep financial crisis in the country. Recently, yuan transactions in Argentina have reached a record level. Amid the dollar squeeze, Whirlpool Corporation, America’s appliance giant, is considering the option of paying with the yuan to import parts for its new factory in Argentina. Local authorities have also turned their sights on the renminbi as an alternative means of payment. Thus, to settle part of its IMF debt, Argentina paid the equivalent of $2.7 billion in the Chinese currency. The country also used the so-called Special Drawing Right for part of the payment. “The Argentine authorities continue to remain current on their financial obligations to the Fund,” said Julie Kozack, IMF Director of Communications.
