Struggling with dollar scarcity, the Central Bank of Argentina (BCRA) announced on June 29 that it has incorporated the renminbi yuan as an accepted currency for deposit-taking in savings banks and checking accounts, enabling financial entities to open bank accounts denominated in renminbi yuan. The measure is complementary to the decision of the National Securities Commission which enabled the negotiation of negotiable securities in RMB yuan, according to the announcement.

Bloomberg reports that in first 10 days of June, yuan transactions in Argentina’s currency market totaled about $285 million, double that for all of May. Furthermore, the share of yuan transactions in Argentina’s foreign currency market hit a daily record of 28 percent in June, up from five percent in May, according to the report, which cites data from Mercado Abierto Electrónico.

Argentina’s annual inflation rate topped 114 percent in May, according to Reuters, which reported on June 14 (citing the country’s statistics agency) that the monthly rise in the consumer price index (CPI) was 7.8 percent—a high number but less than the 8.4 percent posted in April. According to Blue Dollar, as of July 3, 2023, the informal buy rate for the dollar is ARS 489, whereas the official buy rate is ARS 255.

Last Updated on July 3, 2023 by Ramin Seddiq