Bolivia begins commercial operations with yuan in the face of a shortage of the dollar

During the period between May and July 2023, Bolivia has completed financial operations for a total of 278 million Chinese yuan, which represents 10% of its foreign trade. This decision marks an important step in the adoption of the Chinese currency as an alternative, in response to the decline in dollar reserves that has impacted the national economy since February.

In this way, following in the footsteps of Brazil and Argentina, Bolivia joins the regional trend of using the yuan in foreign trade operations.

“We are already using the yuan, it is a reality and a good start. Exporters of bananas, zinc, and wood manufactures are trading in yuan, as are importers of vehicles and capital goods.”, said the Minister of Economy and Public Finance, Marcelo Montenegro. “These are electronic transactions through Banco Unión (state); It is not that physical yuan will arrive, ”he added.

It is important to note that this initiative had already been proposed by Bolivian President Luis Arce, who expressed his intention to increase transactions in yuan instead of dollars, in the midst of a challenging international economic context. Despite this bet, some experts and opposition politicians have expressed skepticism, suggesting that this measure will not solve the underlying economic problems.

For his part, Marcelo Olguín, manager of the Bolivian Chamber of Exporters (CANEB), explained that many exporters opted for the euro and the yuan for their operations in the face of a shortage of dollars. “It is one more alternative to operate,” he defended.

In addition, Montenegro specified that the use of yuan will increase over time because “China is one of the largest economies in the world and is the most important partner in the exploitation of lithium,” it reiterated.