MercoPress. South Atlantic News Agency

Bolivian leader in favor of switching from US dollars to yuan

“Our region is seriously affected by the restrictions and regulations imposed by the US financial system,” Arce told the Mercosur summit

Luis Arce Catacora, president of Bolivia, a Mercosur associate nation that has long been trying to become a full member of the bloc, said Tuesday during the 62nd Summit in Puerto Iguazú (Argentina) that it was time we “move[d] away from the [US] dollar to base ourselves on the [Chinese] yuan and strengthen our own currencies.”

“We have proposed that little by little we should leave the US dollar and base ourselves on the Chinese yuan, but also strengthen our own currencies, make transactions in our own currencies,” Arce insisted.

“Our region is seriously affected by the restrictions and regulations imposed by the US financial system, which limits financing options and possibilities of access to international markets, making it necessary to reduce dependence on the US dollar and diversify our economic and trade relations,” he added.

The Bolivian leader also considered it important to “seek strategic alliances with other international players such as China, which offer alternatives to the dollar in trade and investment”, as well as “work together to strengthen” local currencies at the “regional level”, promoting their use in international transactions.

Arce also pointed out that the BRICS and other integration mechanisms were “projected as spaces for the construction of a new world economic order.”

In Bolivia, China's Ambassador Huang Yazhong has spoken about the possibility of Chinese banks opening branches in the South American country to boost bilateral trade, while Economy Minister Marcelo Montenegro said last month that it was “worthwhile” to have a bank in the country that operates with yuan, due to the commercial exchange Bolivia has with China.

In 2011, Bolivian exports to China exceeded US$ 300 million and imports reached US$ 1 billion. In 2022, exports were around US$ 800 million and imports exceeded US$ 2.5 billion.