Internal politics in South America and relationships with the EU

Bolivia has decided to use the Chinese yuan for import and export settlements regularly. Between May and July, the Bolivians conducted financial operations for 278 million yuan ($38.7 million), accounting for 10% of the country’s foreign trade. The Bolivian authorities’ decision is another challenge to the hegemony of the US dollar in international financial transactions in the region. Meanwhile, the Argentine government and the Bolivian opposition demanded a response from the Bolivian authorities regarding their defence agreement with Iran. According to the Argentines, Iran can thus increase its influence in the region. One of the points of the agreement is to be the sale of Iranian drones to Bolivia.

The International Monetary Fund (IMF) has reached an agreement with Argentina that could soon receive $7.5 billion. It’s part of a 30-month, $44 billion loan program agreed in 2022. The IMF agreed to relax some of its loan program requirements in part because of a severe drought that “has had a significant impact on Argentinian exports and fiscal revenues”.

During the first summit of the European Union and the Community of Latin American and Caribbean States (CELAC) since 2015, discussions were held on, among others, the crisis in Venezuela. Moreover, a wide-ranging declaration of cooperation was adopted, supported by all parties except Nicaragua. Countries committed to holding meetings every two years.