Dedollarization goes further! Argentina sets a precedent for repaying foreign debts with RMB

On June 30th local time, the IMF stated that Argentina is fulfilling its debt repayment obligations. Previously, the Argentine government stated that it had paid $2.7 billion to the IMF using its existing IMF reserve assets and the Chinese yuan.

At present, the severe drought continues to hit Argentina's vital food exports, leaving a huge gap for the already weak central bank reserves. Argentina is negotiating with the International Monetary Fund to speed up the release of the International Monetary Fund aid program and relax economic goals.

In March 2022, the Argentine government and the International Monetary Fund (IMF) reached an agreement on repaying US $45 billion of debt.

Niu Haibin, director of the Foreign Policy Research Institute of the Shanghai Institute of International Studies, said that Argentina's first use of RMB to repay foreign debt set a precedent. The use of RMB to repay foreign debts has expanded its use in the international market, and also reflects the recognition of the importance of the RMB by more international organizations.

This will "encourage" more countries with similar difficulties to take similar measures, thus further promoting the process of Internationalization of RMB.