Bolivia 🇧🇴 has started using the Chinese 🇨🇳 yuan to pay for imports and exports, becoming the third country in South America (af

Bolivia 🇧🇴 has started using the Chinese 🇨🇳 yuan to pay for imports and exports, becoming the third country in South America (after Argentina 🇦🇷 and Brazil 🇧🇷), to do so. Earlier in 2023 the country faced severe USD shortages to facilitate trade. Between May and July 2023, Bolivia conducted financial operations amounting to 278 million Chinese yuan ($38.7 million), which accounts for 10% of its foreign trade during that period. Banana, zinc, and wood manufacturing exporters are conducting transactions in yuan, as well as importers of vehicles and capital goods. Chinese experts said under the US Fed’s aggressive interest rate hiking cycle , many developing countries have been facing mounting pressure from capital outflows, currency depreciation and the rising costs of servicing debt. China is Bolivia’s second-largest trading partner and its primary source of imports. Russia’s 🇷🇺 ambassador to Bolivia, M. Ledenev, said that the transactions between Bolivia’s Banco Union and Russia’s Gazprombank facilitate “the work of Russian companies in the market“. Bolivia’s 🇧🇴 president Luis Arce, earlier this month revealed that the South American region is seriously affected by the restrictions and regulations imposed by the US financial system Bolivian analysts see a difficult road ahead using the yuan in the short term because world trade, imports and debt payments are made with dollars and, in addition, Bolivia needs to earn net international reserves in that currency. The Chinese Ambassador to Bolivia has stressed to the Federation of Private Entrepreneurs that setting up a Chinese bank there to directly facilitate yuan denominated trade will take time. Источник: The Paradigm Shift Channel ⏳