MercoPress. South Atlantic News Agency
Argentine FM holds meeting with Chinese envoy to soothe ties
Argentine Foreign Minister Diana Mondino met Friday with Chinese Ambassador Wang Wei. During the encounter, both diplomats agreed on the importance of the Comprehensive Strategic Partnership signed between the two countries ten years ago, and reaffirmed the principle of one China in reference to Taiwan's separatism. However, there was no mention of the currency swap worth US$ 6.5 billion Argentina was expecting to receive. Read full article
Comments
Disclaimer & comment rulesSpeaking of swaps, Banco do Brasil suspended Letters of Credit for imports or exports coming or going to Argentina in yuan.
Jan 13th, 2024 - 03:04 pm - Link - Report abuse 0Only Letters of Credit in dollars are being issued. Jobs will be lost here and there. And as there is no prospect of diplomatic improvement between us and them, it will be difficult for them to recover.
The focus is to direct lost trade to northern South America, Africa and India.
Can’t see Venezuela importing much, you need markets where they can pay for your goods with hard, i.e. tradable, currency.
Jan 13th, 2024 - 03:32 pm - Link - Report abuse 0Talking of Venezuela, what is or should be, Brazil’s position on the Essequibo dispute?
Anyway Chinese money for loans, currency swaps and the belt and road initiative, is rapidly drying up as China faces a looming property market crisis, amongst other things.
The global south is going to have to get their expensive loans somewhere else for the foreseeable.
It is not good to infer or interfere in business that does not concern us. Essequibo is one of them.
Jan 13th, 2024 - 03:46 pm - Link - Report abuse 0However, I personally believe that some financial or territorial compensation is up to Venezuela. It's my opinion.
Regarding trade with Argentina, it is clear that the levels observed until recently will not be maintained. Therefore, it will be necessary for our diplomacy and entrepreneurship to seek to leverage business elsewhere. As an example, we can list the automotive trade, signing agreements with South Africa, Angola and Colombia for the purchase of auto parts and cars with competitive advantages and which open other business doors. I think that would be ideal at the moment.
The big automotive markets are E. Asia, N. America and Europe break into those and you will be doing well.
Jan 13th, 2024 - 04:34 pm - Link - Report abuse 0Angola, really!!! Probably take payment in Yuan though.
What I'm really saying is that the Bank is no longer issuing Letters of Credit in yuan to Argentina because the financial agreement between China and Argentina is no longer in force, or will not be renewed.
Jan 14th, 2024 - 02:36 pm - Link - Report abuse 0It is quite logical that Brazil wants yuan, after all it is from China that we buy the most and it is to China that we sell the most.
And it is to China that our foreign exchange reserves are being directed.
A short and exciting video from the 6th Army.
https://www.youtube.com/watch?v=3o8HcnZd-QI&list=FLmXPTu1f8AdGlizWNiASx2A&index=2&t=312s
Brasileiro
Jan 14th, 2024 - 03:11 pm - Link - Report abuse 0I agree with Pugol about doing business with viable hard currency,
such as USD and Euros...
Recently I purchased a Japanese tractor with USD. Your country is manufacturing tractors, but they were uncompetitive.
The Chinese tractors were cheep, but unrialible. (There's a saying that what is cheep costs expensive in the end.)
Currently the Chilean auto market is flooded with numerous Chinese imports.
I'm happy your country is manufacturing very good vehicles, but your taxes make them unviable.
¡Saludos de Viña!
Chinese tractors are still very few here in Brazil. A few weeks ago we signed a tax exemption agreement for the production of tractors aimed at small agricultural properties. Small agricultural properties are managed by families that produce almost all the food that goes on the table of Brazilian families.
Jan 14th, 2024 - 03:27 pm - Link - Report abuse 0https://www.youtube.com/watch?v=EmdZMRe2hJ0
And what I am saying is that China doesn’t have the money to keep lending Argentina and yes it’s perfectly logical for Brazil to want Yuan given your trade with China, but Yuan are of limited use if you want to buy on the world market.
Jan 14th, 2024 - 03:59 pm - Link - Report abuse 0Also Brazil exports mostly commodities to China, ‘soybeans (69% of exports), iron ore (61%), wood pulp (41%), oil (37%) meat (36%), and sugar (15%) according to 2021 data from ITC. In 2022, roughly 1/3rd of agribusiness exports were China-bound.’
A market that can contract a lot and quickly, diversifying into added value manufactured good also makes perfect sense for Brazil, but you won’t be supplying China, those markets are in the developed world where they have the hard and tradable currency to pay for such goods.
Mostly what the global south needs is aid of one sort or another.
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