Leaders from Brazil, Mexico, Colombia, Chile, Bolivia, and Paraguay have reached out to US President Joe Biden, requesting support for Argentina’s plea to the International Monetary Fund (IMF) to modify the terms of its $45bn loan refinancing.

The objective is to prevent Argentina, under the leadership of Alberto Fernández, from defaulting on its loan and facing contractual penalties. In a joint letter, the presidents emphasised that disregarding the changing circumstances and imposing inflexible demands on Argentina would unnecessarily push the country into a crisis.

Meanwhile, Argentina’s scarcity of dollars has led many companies in the country to consider using Chinese yuan to pay for imports. As the dwindling supply of dollars affects businesses across the country, it highlights the financial challenges Argentina faces and China’s ambitions for the yuan.

The dollar’s dominance in global trade is being challenged, particularly in developing countries, due to the rivalry between the United States and China. In Argentina, where long-term planning is hindered by skyrocketing inflation and political complexities, the yuan offers a quick, short-term solution to keep production lines running.