Argentina pays IMF loan partly with Chinese yuan, what does it mean?

Argentina on Friday made a 2.7 billion U.S. dollars loan repayment to the International Monetary Fund (IMF) partly using the Chinese yuan, which was the first time that Argentina had used the Chinese yuan to repay its external debt. The country also used the special drawing rights, an asset created by the IMF to supplement countries’ official reserves, for part of the repayment. In an interview with China Central Television (CCTV) on the same day, Juan Manuel Carnevale, a professor at the University of El Salvador, said using the Chinese yuan to pay the loan is a wise choice made by the Argentine government. “Using the Chinese yuan to repay the load can ensure Argentina’s compliance with its international commitments, and promote the economic and trade exchanges between Argentina and China. Argentine enterprises need to import a large amount of goods, most of which come from China,“ said Carnevale. He said the expanding influence of the Chinese currency in Latin America reflects China’s important role in world. “China is constantly producing and selling a large amount of commodities. Those countries that trade with China need to use a more convenient currency -- the Chinese yuan. In addition, China’s influence in Latin America is expanding. China is doing something that other countries will not do, that is, providing financing to assist the development of countries in the region,“ he said. __________________ ShanghaiEye focuses on producing top-quality contents. Nobody knows SHANGHAI better than us. Please subscribe to us ☻☻☻ __________________ For more stories, please click ■ What’s up today in Shanghai, the most updated news of the city ■ Amazing Shanghai, exploring the unknown corners of the city, learning the people, food and stories behind them ■ What Chinese people’s lives are like during the post COVID-19 period ■ Views of foreign scholars on China and its affairs ■ Foreign faces in Shanghai, people living in this city sharing their true feelings ■ Mini-docs showing why China is the country it is today __________________ ☎Leave us messages if you have any suggestions or questions! Thank you!