In Argentina, the dollar disappears and now it’s ‘yuan for everyone’ – 06/27/2023 – Nelson de Sá

The American Bloomberg reported and the Chinese media echoed, from the South China Morning Post, in Hong Kong, to the Guancha portal, in Shanghai, that “the use of yuan reaches a record level” in the Argentine economy due to the “scarce dollar”.

In one of Bloomberg’s statements, “Yuan for everybody”. It was the headline of Guancha, “In Argentina, RMB for everyone”, using the other name of the Chinese currency, renminbi:

According to Argentine customs, more than 500 companies have already requested to pay imports in yuan, of electronic equipment, auto parts, textiles, oil and mining. Bloomberg says:

“Whirlpool, the American appliance giant, is considering paying with yuan to import parts for a new factory. It is not alone. Throughout Argentina, the dwindling supply of dollars is pushing companies to adopt a currency that played a peripheral role in trade. The trend underscores Argentina’s financial difficulties and China’s ambitions for the yuan.”

The lack of imports came to “briefly interrupt production” of the new Whirlpool on the outskirts of Buenos Aires. “This is not good for business, for productivity”, says its regional president. “We are working to see how to leverage this new flow path to continue importing materials.”

On the other hand, the same Bloomberg reports that, in the Chinese financial market, “yuan weakens to the lowest value in seven months, despite the action [do banco central] to contain the fall”.

ISRAEL GOES TO CHINA

Zman Yisrael (Times of Israel) reports that Benjamin “Netanyahu will visit China next month”. He quotes, from unnamed sources, that “China has stepped up its involvement in the Middle East, and the prime minister needs to be there and represent Israel’s interests.”

The sources “note that President Isaac Herzog is due to visit the White House in three weeks, which balances the picture somewhat.”

BIDEN AND THE ‘ELECTED AUTOCRACIES’

The New York Times held up for days its editorial on the visit of Indian Prime Minister Narendra Modi. In it, he exonerates President Joe Biden, saying that “a public rebuke [de Modi] would do little but irritate the Indian public.” But he warns:

“Leaders of elected autocracies, from the Law and Justice government in Poland to Netanyahu’s far-right coalition in Israel, will be watching closely to see how the Biden administration handles this increasingly autocratic democracy.”

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