In order to alleviate the serious shortage of US dollar reserves, the Central Bank of Argentina will allow domestic commercial banks to open an account with RMB and encourage local companies to pay overseas with RMB.
Comprehensive Bloomberg and First Financial report, the Argentine Central Bank issued an announcement on Thursday (June 29) to include the RMB into the Argentine banking system to access the currency, approve the domestic banking institutions in Argentina to open RMB savings andSurid deposit account business.
Announcement stated that the move is convenient for RMB to provide convenience in Argentina's foreign trade and local financial markets.
Earlier, the Argentine National Securities Committee on Monday (26th) has been approved to issue securities products settled in RMB in the local market.Bloomberg reported that this trend highlighted Argentina's severe financial situation and China's ambition to RMB.
Since October 2020, the Argentine Central Bank has been committed to promoting the spot and futures business in the local foreign exchange market to ensure the stability of domestic financial and reducing the pressure on foreign exchange reserves in the country.
The RMB usage in Argentina's foreign exchange market has also reached a record high.Data from the local foreign currency trading company Mercado Abierto Electrónico shows that the share of the RMB in the Argentine foreign exchange market has set a record, reaching 28%of the total daily transaction.
