Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation

Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation  0

Welcome to Latam Insights, a compendium of the most relevant crypto and economic development news from Latin America during the last week. In this issue, Bolivia mulls using the Chinese yuan in international trade settlements, inflation reaches 108.8% in Argentina, and Steve Hanke states he can eliminate Venezuela’s inflation in 30 days.

Bolivia Mulls Using Chinese Yuan in International Trade Settlements

The government of Bolivia has announced it is considering the usage of the Chinese yuan as a replacement for the US dollar for international trade settlements. The Bolivian President Luis Arce instructed the central bank to research if the recent advancement regarding the use of the Chinese currency in Brazil and Argentina could be also be applied in Bolivia’s case.

In a meeting with Bolivian journalists, Arce stated:

In the world, there are several countries that are going through illiquidity of dollars, to such an extent, what Argentina, Brazil, France, and the Arab countries are doing is no less. What are they doing? They decide not to trade in dollars.

Bolivia recently passed a law to sell half of its gold reserves for dollars to give a solution to its dollar liquidity issues.

Inflation Reaches 108.8% Year Over Year in Argentina

The National Statistics Institute of Argentina (INDEC) has delivered the price data corresponding to April, registering an inflation increase of 108.8% year over year. The inflation number jumped further higher than the 104.3% registered in March. Food and beverage items contributed the most to the rise in inflation numbers, with prices rising 10.1%.

The Argentine government explained that “the exchange rate unrest in the financial dollar markets, in the last part of the month, prompted preventive price increases in many products and services of our economy,” acknowledging that it would have to make bigger efforts to achieve better results in its fight against inflation.

Steve Hanke Believes He Can Eliminate Venezuela’s Inflation in 30 Days

Steve Hanke, professor of applied economics at Johns Hopkins University, stated that he could bring inflation down in Venezuela in 30 days. Hanke, who is currently an economic advisor to Roberto Henriquez, a presidential candidate for the upcoming elections, believes that the solution to Venezuelan inflation is the implementation of a currency-board system.

This currency board system would allow for the exchange of Venezuelan bolivares at a fixed rate against the US dollar. In an interview on a local radio station, Hanke stated:

Within 30 days the inflation in Venezuela would be completely eliminated: and the inflation rate would be very close to the inflation rates in the U.S.

Hanke has already directed programs of this kind in Estonia, Lithuania, Bulgary, and Bosnia and Herzegovina.

Tags in this story Argentina, bolivia, bolivian president luis arce, inflation, latam, Steve Hanke, U.S. dollar, Venezuela

What do you think about the developments in Latin America this week? Tell us in the comment section below.

Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation  1 Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation  2 Hedge Fund Mogul Stanley Druckenmiller Warns of ‘Hard Landing’ for US Economy NEWS | 7 hours ago Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation  3 Bitcoin Makes Progress in Clearing Backlog, but Lightning Network Capacity and Channels Dropped Amid Congestion NEWS | 14 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons

Previous article

China, France to Deepen Ties Following Meeting of French President Macron and Chinese Leader Xi Jinping

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimerShow comments

More Popular News

In Case You Missed It

Latam Insights: Bolivia Mulls Chinese Yuan for Trade Settlements, Steve Hanke Proposes 30-Day Solution for Venezuelan Inflation  4

Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament

A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market … read more.

Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design

Source

Updated: 05/15/2023 — 02:00

Leave a Reply

Your email address will not be published. Required fields are marked *

Btc news © 2021 Frontier Theme