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.
this post was submitted on 15 Jul 2023
14 points (65.9% liked)
World News
32375 readers
762 users here now
News from around the world!
Rules:
-
Please only post links to actual news sources, no tabloid sites, etc
-
No NSFW content
-
No hate speech, bigotry, propaganda, etc
founded 5 years ago
MODERATORS
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.
Brazilian neighbour here, how has this change impacted the old issues with inflation? I remember there always being lots of complaints from colleagues employed over there about that and it also getting exploited a lot by our tourists, but the BRL to ARS exchange rate doesn't seem to have changed much.
There hasn't been a significant change but this took efect weeks ago, so since Argentina has psychological dependance on the dolar we are still kind of tied to that and the economy hasn't seen an effect, but with time it will get better (unless Milei wins, he is a ultra right wing libertarian who wants to make the dolar the natiobal currency, then we fucked).
I mean, 10 years ago China would not have been an option, just more IMF loans. Seems to fit the label of dedollarization perfectly.
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.
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.
I lived in China for 20 years.
Do some research before projecting.
Just more tankie posts and headlines for the tankie always posting here :)
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.
responsibly manage your currency
I mean...
Sure. The wild fluctuations in value and the lack of liquidity are just minor issues that anyone running a billion-dollar industrial operation should be able to overcome easily.
The fees are way way way more expensive with bitcoin than real money also. This guy is a troll or deluded.
view more: next ›