BUENOS AIRES, Sept 17 Argentina on Thursday took
a step toward trading with China using the renminbi currency of
the Asian economic powerhouse, its central bank said, part of a
strategy to ease its reliance on its low dollar reserves.
Facing a dollar shortage, the South American country last
year signed a currency swap deal with China worth up to the
equivalent of $11 billion to strengthen reserves and pay for
Chinese imports.
The two countries' central banks on Thursday signed a
memorandum of understanding that paved the way for the
establishment of a local renminbi clearing house.
"Based on this agreement, a renminbi clearing bank will be
appointed and will provide the financial structures needed for
the settlement of transactions for trade and investment between
the two countries and in accordance with regulations," the
Argentine central bank said in a statement.
Banking sources say the Argentine central bank has already
tapped at least $8 billion-worth of renminbi.
(Reporting by ELiana Raszewski; writing by Richard Lough)