Welcome to Latam Insights, a compendium of the latest cryptocurrency and economic development news from Latin America over the past week. In this case, Bolivia is considering using the Chinese yuan in international trade settlements, inflation is running at 108.8% in Argentina, and Steve Hanke says he can eliminate inflation in Venezuela in 30 days.
Bolivia is considering using the Chinese yuan in international trade settlements
Bolivia’s government has announced that it is considering using the Chinese yuan as an alternative to the US dollar for international trade settlements. Bolivian President Luis Arce has instructed the central bank to examine whether the recent progress regarding the use of the Chinese currency in Brazil and Argentina can also be applied in the case of Bolivia.
In a meeting with Bolivian journalists, Ars advertiser:
In the world, there are many countries that suffer from illiquidity of dollars, to this extent, no less than what Argentina, Brazil, France and the Arab countries do. What are they doing? They decided not to trade in dollars.
Bolivia recently passed a law to sell half of its gold reserves in dollars to find a solution to dollar liquidity issues.
Inflation was 108.8% year-on-year in Argentina
The National Institute of Statistics of Argentina (INDEC) presented the corresponding price data for the month of April, Register Inflation increased by 108.8% year on year. The inflation figure jumped higher than the 104.3% recorded in March. Food and beverages contributed the most to the higher inflation figures, with prices rising by 10.1%.
Argentine government to explain That “exchange rate turmoil in the financial dollar markets, in the latter part of the month, led to preemptive price increases in many products and services of our economy,” while acknowledging the need for greater efforts to achieve better results in its battle against inflation.
Steve Hanke believes he can eliminate inflation in Venezuela in 30 days
Steve Hanke, a professor of applied economics at Johns Hopkins University, stated that he could bring Venezuela’s inflation down within 30 days. Hanke, who is currently working as an economic advisor to Roberto Henriquez, the 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 will allow the exchange of Venezuelan bolívars at a fixed rate against US dollars. In an interview with a local radio station, Hanky advertiser:
Within 30 days, inflation in Venezuela will be completely eliminated: the inflation rate will be very close to the inflation rates in the United States
Hanke has already run programs of this kind in Estonia, Lithuania, Bulgaria and Bosnia and Herzegovina.
What do you think of developments in Latin America this week? Tell us in the comment section below.
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