One more country declares an end to its dependence on the dollar

 On July 28, Bolivian Economy Minister Marcelo Montenegro affirmed the South American country's government is determined to stop relying on the dollar for trade with China.

One more country announced it would stop depending on the dollar, conducting transactions in yuan. (Source: Reuters)

Speaking at a news conference, Montenegro said that through the state-owned Banco Unión bank, Bolivia's import-export enterprises have made transactions in yuan.

According to official data, since March 2023, the Bolivian government has collected a total of 278.8 million yuan from trade activities with China.

The Montenegro minister added that the role of the yuan will become increasingly important as trade, investment and credit relations between Bolivia and China are forecast to increase sharply in the coming years. 

In addition, the government of the South American country is also considering the possibility of paying its debts to China in yuan.

Along with that, the yuan is also a solution to improve trade integration among Latin American countries in the context that major economies in the region such as Argentina and Brazil have announced plans to increase the use of the yuan in trade.

In Latin America and the Caribbean, the use of yuan is increasing, especially "in countries seeking to establish stronger ties with China who see themselves in some way politically aligned with this particular goal in order to reduce their overall dependence on the dollar.

Last month, China's ambassador to Bolivia Huang Yazhong said the two governments were considering creating favorable conditions for Chinese commercial banks to open branches in the South American country.

In an interview with local media, Ambassador Huang said China will have appropriate policies to encourage its commercial banks to open representative offices in Bolivia to support payment and transaction activities in bilateral trade.