china, argentina to trade in chinese currency

China, Argentina to conduct trade in Chinese currency

Submitted by cpowell on Tue, 2009-03-31 02:40.
Section: Daily Dispatches
China and Argentina in Currency Swap

By Jude Webber
Financial Times, London
Tuesday, March 31, 2009

http://www.ft.com/cms/s/0/eba6405c-1d7e-11de-9eb3-00144feabdc0.html

SANTIAGO, Chile -- China, which is pushing to end the dominance of the dollar as a worldwide reserve, has agreed a 70 billion renminbi currency swap with Argentina that will allow it to receive renminbi instead of dollars for its exports to the Latin American country.

Xinhua, the official Chinese news agency, said the deal was signed on Sunday by Zhou Xiaochuan, governor of the People's Bank of China, and Martín Redrado, Argentine central bank president, in Medellín, Colombia, where they are attending a meeting of the Inter-American Development Bank.

An Argentine official confirmed a deal had been discussed and said the fine print was being worked out and negotiations were "very advanced."

Beijing has signed 650 billion renminbi ($95 billion, E72 billion, L67 billion) of deals since December with Malaysia, South Korea, Hong Kong, Belarus, Indonesia, and, now, Argentina in an attempt to unblock trade financing that has been severely curtailed by the crisis.

At http://www.gata.org/node/7320

My comment:

The death of the US dollar as the World's reserve currency is pretty obvious when one reads this. China is too smart and too powerful to remain subservient to the USA and trade in a USA currency that is being devalued to toilet paper.

In fact, it won't be that long before one roll of toilet paper is worth more than one US dollar. lol rofl.