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News > Argentina

Argentina Enables Deposits in Yuan for Local Bank Accounts

  • Argentina encourages local companies to make payments abroad in Chinese currency. Jun. 30, 2023.

    Argentina encourages local companies to make payments abroad in Chinese currency. Jun. 30, 2023. | Photo: Twitter/@Reuters

Published 30 June 2023 (12 hours 25 minutes ago)
Opinion

The country seeks to address an acute shortage of dollar reserves. 
 

The Central Bank of Argentina announced that it will allow financial entities to use the Chinese yuan as a currency to capture deposits from individuals and legal entities.

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According to a statement released Thursday, financial entities will be able to open checking and savings accounts denominated in the Chinese currency.

The central bank indicated that "the measure is complementary to the decision of the National Securities Commission (CNV), which enabled the negotiation of negotiable securities in yuan" in the local financial market.

In early June, the CNV said it would support the development of financial operations in the Chinese currency, specifically in the spot and futures markets.

The Central Bank of Argentina (BCRA) announced on Thursday the incorporation of the yuan, or renminbi, as a currency accepted by the country's financial institutions to attract deposits from natural and legal persons.

The Central Bank's announcement came on the same day as a government statement on the payment of an International Monetary Fund debt maturity with Special Drawing Rights and freely available yuan.

Argentina aims to address an acute shortage of dollar reserves and encourage local companies to make payments abroad in Chinese currency.

According to data from the Electronic Open Market, the yuan's share in the foreign exchange market has already reached a record 28% of total transactions in one trading day. 

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