BRICS: Bolivia Ditches U.S. Dollar, Pays Chinese Yuan for Global Trade

The BRICS alliance is becoming successful in convincing developing countries to end reliance on the U.S. dollar and pay in the Chinese Yuan as an alternative currency, and Bolivia is an example. Bolivia is using the Chinese Yuan to settle cross-border transactions and not the U.S. dollar, reported the Associated Press.

The Bolivian Economic Minister, Marcelo Montenegro acknowledged that the country’s Central Bank switched to the Chinese Yuan for global trade. The Latin American country is harnessing the Chinese Yuan due to the U.S. dollar’s shortage that’s plaguing its economy.

Also Read: Russia & India Make Huge Announcement on BRICS Currency

BRICS: Bolivia Uses Chinese Yuan, Sidelines The U.S. Dollar

Source: news.bitcoin.com

Montenegro stressed that Bolivia plans to have a branch of a Chinese bank in the country. The Chinese branch of the bank would accelerate currency adoption, allowing smoother and more cost-effective remittance. Bolivia is facing a dollar crunch which has affected its economy including the exchange rate of the U.S. dollar.

Also Read: BRICS Prohibits Western Countries From Attending Summit in August

“It is clear that sometimes it is not necessary to have a bank to carry out operations. But having a Chinese bank or one close to the region can also facilitate operations much more smoothly,” he said.

The Bolivian Central Bank is carrying out settlements using the Chinese Yuan only in some of its international transactions. The majority of the settlements are currently being initiated in the de facto global currency, the U.S. dollar.

US Dollar Chinese Yuan Currency
Source: energyintel.com / rustamxakim/ Shutterstock

Also Read: BRICS Invites Leaders From 69 Countries To Attend Summit in August

The governments of Bolivia and China are in talks to set up a Chinese bank to act as intermediaries for transactions. China’s Ambassador, Huang Yazhong said that the process of opening a Chinese bank in Bolivia will boost the Yuan. Additionally, Bolivia’s President Luis Alberto Arce openly called for the de-dollarization of the country and expressed his support for BRICS.

“Our region is seriously affected by the restrictions imposed by the northern financial system, which limits financing options, making it necessary to reduce dependence on the U.S. dollar and diversify our economic relations,” he said.

  • Bolivia
  • BRICS
  • Chinese Yuan
  • US DOLLAR

Comments

Post a Comment

Popular posts from this blog

DeFi CEO Says ‘No One Cares’ to Deutsche Bank Entry into BTC Custody

Deutsche Bank to offer bitcoin custody solution for institutional clients. Cake Group CEO believes the move will not substantially increase capital inflow or attract new participants. Deutsche Bank’s Paul Maley projects the digital asset sector to grow to trillions of dollars. Julian Hosp, the CEO of DeFi business Cake Group, has shared a skeptical reaction to Deutsche Bank’s newly-launched bitcoin custody services for institutional clients. Responding to a post on X (Twitter) by Bitcoin Magazine announcing the bank’s new services, Hosp wrote “Sadly, no one cares”. In full, his response read, And guess what… sadly no one cares… because everyone in Germany can already buy #bitcoin either with an ETF (that has literally ZERO volume) or on an exchange. All these banks entering the space, are not bringing in extra money or people. They are just re-routing existing… https://t.co/MMZHSbGB9U — Dr. Julian Hosp (@julianhosp) September 15, 2023 T...
Read more

MATIC Price Plunges, Have the Bulls Finally Lost Control?

Image
MATIC witnessed a decline in bullish momentum and has lost hold of the $0.74 psychological support. Buying pressure was weak as the CMF hovered around the zero line. Traders might likely short/sell MATIC in the near term since the 50 EMA crossed over the 20 EMA. Polygon (MATIC) brief dip below $0.78 has turned out to be an event that has lasted a whopping five days. Over the last 24 hours, the altcoin had lost 2.32% of its value. But its last 30 days’ performance was controlled by the bulls where MATIC increased by 6.61%. Currently, the MATIC/USD 4-Hour chart shows that the altcoin was hovering around a tight support zone at $0.71. Due to decreased demand, MATIC’s buying strength has been cut off. This indicates bearish dominance around $0.72. For MATIC to regain bullish momentum, the price must rise above the $0.74 psychological level. But if selling pressure outweighs demand, then the recovery attempt could be quenched. Furthermore, bears have ...
Read more

Crypto Analyst: PEPE Will Outperform DOGE in Next Bull Cycle

Image
Miles Deutscher predicts PEPE will outperform DOGE in the next bull cycle. Deutscher noted that fewer PEPE holders are underwater compared to DOGE holders. PEPE has more multiples to reach its previous all-time high (ATH) compared to DOGE. PEPE will outperform DOGE in the next bull cycle, predicts Miles Deutscher, a renowned cryptocurrency analyst. In a Twitter post, Deutscher highlighted the reasons behind his prediction. I think $PEPE outperforms $DOGE next cycle. Why? • The Underwater Thesis: Less PEPE holders underwater vs DOGE, meaning less sell pressure on the way up + lower multiples to reach previous ATH (2.8x vs 12x). • People are more fatigued with the DOGE meme, Pepe feels fresher… — Miles Deutscher (@milesdeutscher) June 23, 2023 Deutscher’s first reason for supporting PEPE to outperform DOGE in the next cycle is what he called “The Underwater Thesis.” He noted fewer PEPE holders are “underwater” compared to DOGE holders. By that, he me...
Read more