Trade with China: Two companies based in Tierra del Fuego have agreed to pay for their imports in yuan

After confirming the extent of exchange with China by $5 billion to $10 billion To pay for imports, the main electronic industries in Tierra del Fuego have agreed to make payments in Chinese currency.

As reported by the Customs, these are payments due in the months of May, June, July and August, the original payment of which was agreed in dollars.

Specifically, Newsan will pay in yuan $256.7 millions, while Mirgor will do the same with a maturity of 376 million dollars.

This will allow the Central Bank to save the equivalent of US$630.3 million.

Customs reported that these companies “had already approved the transfer in dollars but voluntarily switched to yuan to ease reserves“.

Mirgor and Newsan they are the two main companies based in Tierra del Fuego to take advantage of the tax advantages for electronic production. Mirgor imports Samsung mobiles and televisions, while Newsan operates its own brands such as Noblex, Philco and Atma and also has agreements with international companies such as Motorola and Bosh, among others.

“Both importers have already started the customs process to adjust the customs clearance and be able to pay this debt already accrued in dollars in yuan,” the official agency specified.

The importers’ announcement came after it was confirmed that Minister Sergio Massa had agreed in Beijing to renew the currency exchange with China for the equivalent of 19 billion dollars.

This agreement, known as a swap, was originally entered into in 2009 and has since been renewed. With the exchange, an attempt was made to strengthen the reserves of the Central Bank. The exchange had not been used so far. But now it has been agreed that the yuan can be used to pay for imports from China. This allows Argentina to ease its delicate exchange rate situation given the shortage of dollars and with the negative reserves of the Central Bank due to $1.7 billion.

The agreement foresees that they can be used in a first phase $5 billion of trade for imports. And once that quota is used up, another section will be enabled for 5 billion dollars.

But it was also agreed that the $10,000 million will be “freely available” which, according to senior official sources, “be able to intervene in the foreign exchange market and avoid sudden shocks of the dollar“, as posted clarion Today.

AQ