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Chinese renminbi key currency for Argentina's financial stability: experts

The Chinese currency renminbi (RMB) is key for the financial stability in Argentina, which intends to boost its economy by seeking new investments in such sectors as infrastructure, local experts have said recently.

Though the majority of global trade is carried out in U.S. dollars, the RMB is gaining on the world's leading currencies, director of the Research for Traders consultancy Dario Epstein said in an interview with Xinhua.

"The role of the RMB as an international trading currency is growing," he said, adding that both the number of companies using the RMB to carry out operations and the number of banks accepting such payments are on the rise.

By 2020, around 50 percent of China's foreign trade will be conducted via the RMB, according to the data released by Hong Kong-based bank HSBC.

The Industrial and Commercial Bank of China (ICBC) in September announced the launch of local RMB clearing services in Buenos Aires, the capital of Argentina, marking an important step in the RMB's internationalization in Latin America and the Caribbean region.

"With the IMF's including the RMB in its basket of reserve currencies, this currency now becomes a desired component for any central bank," said Diego Guelar, who was named Argentina's ambassador to China in early December.

He said that he would seek to increase the currency swap between China and Argentina.

"We must understand that this operation is becoming a more normal loan than the old swaps. The yuan has evolved as a reserve currency," he said.

Gustavo Girado, director of the Asia and Argentina consultancy, told Xinhua that "it is good news every time two growing economies find a way to eliminate obstacles."

"It would help China and Argentina become integral partners. It would create a deeper commercial and trade relationship as well as a number of other opportunities," he added.

Gabriel Holland, director of Financial Advisers HR Global, said that "the relative weight of the RMB will grow ever stronger in global trade and finance at the expense of the current main players. This is certainly good news as it brings about opportunities that can be used intelligently."

[Source: Xinhua, Bs As, Arg, 02Jan16]

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small logoThis document has been published on 04Jan16 by the Equipo Nizkor and Derechos Human Rights. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.