For the record, this has more to do with Argentine financial mismanagement and China’s “expansive” fiscal policy than with the dedollarization that the headline is trying to imply.
We (I’m from Argentina) have not enough dollars to pay the IMF loan and had a bunch of yuans in reserve China lend us to trade with them, a ‘swap’ as I heard they call it.
What’s worrying is that yuans have a secret loan interest, probably quite a high rate. Don’t ask were the IMF loan money went, for sure it wasn’t spent on me.
Just more tankie posts and headlines for the tankie always posting here :)
Mismanagement? Fuckk, you yanks fuck us up through the IMF. We are debt trapped in another of the US economic games. It IS related to dedolarisation because the dolar as the internstional currency causes this type of issues in explouted nations. There is a reason why us and my Brasilian brothers are doing it, us being the two biggest economies in Southamerica.
Good luck with being debt trapped to China.
What the hell do you even know about that. Cerra el orto gringuito boludo.
The reality is that US raising rates creates problems for countries like Argentina which makes repaying their foreign debt more expensive. In the end it, the drive for dedollarization is that it provides countries with a way out of the exploitative credit system US created via IMF and the dollar hegemony.
“Having spent all of their US dollars, Argentina is forced to use Chinese yuan, compelling on+location businesses to do likewise.”
Or you could just start using Bitcoin for international trade. No having to trust a specific country to responsibly manage your currency. Send money anywhere instantly with 99.9% uptime, much lower fees than banks/swift/etc, 365 days a year, etc.
