Bolivia has recently joined the ranks of countries that use currencies other than the US dollar in foreign trade.
Bolivian Economy Minister Marcelo Montenegro said at a press conference this week that his country follows “a pattern at the level of international trade, that is generating a progressive increase in the use of the yuan in foreign trade,” according to media reports.
“Banana, zinc, and wood manufacturing exporters are conducting transactions in yuan, as well as importers of vehicles and capital goods,” he said.
According to the minister, financial transactions worth about 278 million yuan were conducted by Bolivia from May through July, which amounts to about 10 percent of transactions in Bolivia’s foreign trade during that period.
One Chinese newspaper also points out that Bolivia is not the first country in Latin America to start using yuan in foreign trade.
Back in February, Brazil signed a memorandum with China in order to establish “yuan clearing arrangements,” the media outlet notes, adding that Argentina announced in April its plans to use yuan to pay for Chinese goods.
The economic war waged by the United States against Russia since February 2022, which involved the seizure of Russian foreign exchange reserves denominated in US dollars, has dealt a serious blow to the reputation of the US dollar as world’s premiere reserve currency.
Over the past several months, many countries across the world started seeking to steer clear of US dollar in foreign trade, sparking talks about the prospects of de-dollarization in the not-so-distant future.