Yuan strengthens its position in South America

Bolivia is becoming another country in South America that is reducing its dependence on the US dollar and actively using the Chinese yuan in trade operations. 

From May to July, transactions in yuan accounted for approximately 10% of Bolivia's total foreign trade. This change occurred against the background of a shortage of dollars caused by a decrease in natural gas production in the country.

During the mentioned period, the total volume of Bolivia's financial transactions in yuan reached 278 million (or approximately $39 million). 

Exporters of goods such as bananas, zinc and wood, as well as importers of vehicles and production equipment are also seeking to switch to the use of yuan. Despite the fact that at the moment the amount of transactions in yuan remains relatively small, Bolivian officials confirm that it will grow in the future.

The national currency of Bolivia, the boliviano, is pegged to the dollar. However, the decrease in foreign exchange reserves undermined the government's ability to maintain this peg, which led Bolivia to decide to switch to using the yuan, following the example of Argentina and Brazil.