It is well known that Argentina has less US dollar reserves. From June 27, 2022, the Central Bank of Argentina announced new foreign exchange control measures for imports. According to reports, the new measures affect almost all importers in Argentina, especially large importers, and are valid until September 30, 2022. In addition, the Central Bank of Argentina introduced a pre-financing system to promote exports, extending the foreign currency settlement time limit for grain exporters from 5 days to 15 days. The Argentina government stated that the new foreign exchange control measures are not to restrict imports, but to encourage enterprises to raise their own dollars to pay for goods in order to stabilize the foreign exchange reserves of the Central Bank of Argentina; at the same time, to provide foreign exchange facilities for energy imports to maintain economic growth and the development of small and medium-sized enterprises and to avoid import speculation Behavior. Therefore, Argentine companies need cumbersome procedures and a long application period to pay US dollars for imports.

But there is good news today that Argentine companies can use RMB to pay for goods imported from Chinese companies.

Argentina Facilitates Trade with China through Bilateral Currency Exchange The Central Bank of the Argentine Republic (BCRA) and the Bank of the People's Republic of China have signed an agreement for bilateral currency exchange. As a result, the Argentine Republic Customs Broker Center has implemented a new advantage code "ACCESO_MLC_YUAN" in the MALVINA Computer System to expedite foreign trade procedures and facilitate access to the Chinese currency. The advantage code, effective as of April 25, 2023, allows the use of the Chinese Yuan as the currency to be acquired in cases where the FOB (Free on Board) value has been declared in a different currency in the Argentine Republic Import System (SIRA) and associated dispatches. This move is expected to significantly enhance trade between Argentina and China, which have been strengthening their economic relations in recent years. The use of the Yuan will also provide an alternative for businesses to access funds in a foreign currency, reducing exchange rate risks and transaction costs. The Argentine Republic Customs Broker Center has encouraged its associates to take advantage of the new advantage code and use the Yuan in their foreign trade transactions with China. The move is expected to further strengthen the economic ties between the two countries and promote increased trade volume.