IMF to Accept Yuan Payments for Debt – What Does it Mean for the Dollar?
The International Monetary Fund (IMF) has suggested the possibility of recognizing the Chinese Yuan as an eligible currency for countries to fulfill their IMF obligations.
This comes after Argentina’s recent repayment of its debts using the yuan.
According to Julie Kozack, an IMF spokesperson, Argentina has already paid a portion of its debts in yuan, specifically $1.1 billion out of $2.7 billion that matured last month.
Kozack emphasized that Argentina has consistently met its financial obligations to the IMF. She also mentioned that the Chinese currency, known as the renminbi (RMB), is among the five freely usable currencies that members can utilize for IMF settlements.
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Argentina’s Central Bank made a notable decision to include the yuan as a recognized currency for deposits in savings banks and checking accounts. This move indicates a shift away from the exclusive reliance on the U.S. dollar as its official reserve currency.
Furthermore, Brazil has joined the trend by entering into an agreement with China earlier this year, enabling them to conduct trade and investments using their own currencies, which further diminishes the dominance of the U.S. dollar.
Source: ModernDiplomacy
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
