According to a Bloomberg report, the yuan surpassed the euro in April 2024 while reaffirming its lead and second position in July.
He dollar It is the most widely used instrument when making international transactions, however in recent days it has been announced that the Chinese Yuan began to displace the euro in international transactions.
These advances are related to the constant efforts made by the Asian giant to consolidate its economy and its currency outside its vast borders. And in recent yearsChina has succeeded in getting several developing nations to choose to make their commercial payments in yuanwhich inevitably strengthens China’s position in the global market.
According to Bloomberg reports, The yuan overtook the euro in April 2024, while reaffirming its lead and second position in June. Meanwhile, payment messaging system SWIFT reported that in April, nearly 6% of global payments were made in yuan, but in June, this figure doubled to 13.37%.
The consolidation of the Chinese economy and its role with the BRICS
The progress of the Chinese yuan is closely linked to a broader strategy of the countries that make up the BRICS (Brazil, Russia, India, China, South Africa), which was initially formed by them and has now been expanded to include more countries, and is a political and economic forum for emerging states seeking an alternative space for debate to the G7 (Group of Seven – Germany, Canada, the United States, France, Italy, Japan and the United Kingdom).
So, andBRICS seek to reduce dependence on the US dollar and the euro at a commercial level and find in the yuan a third way that can be consolidated and be useful.
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Javier Milei’s government made it official that Argentina will not join the BRICS
At the end of December, the government of Javier Milei made official its decision that Argentina will not join the BRICS, the political and economic bloc formed by Brazil, Russia, India, China and South Africa.
The opportunity to join the BRICS was generated by the Government of Alberto Fernández, but with a new administration, it was decided not to continue with that geopolitical position.
In a series of letters to all countries, Javier Milei He said: “As you know, the foreign policy approach of the government I have headed for a few days differs in many ways from that of the previous government.”
And he said: “In this regard, I would like to inform you that at this stage the incorporation of the Argentine Republic into the BRICS as a full member as of January 1, 2024 is not considered appropriate. Without prejudice to this, I wish to highlight my Government’s commitment to strengthening bilateral ties with your country, in particular by increasing trade and investment flows.”
Source: Ambito
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