Still better than being indebted to Dollars, considering the interest rates and the imposition of austerity measures by the IMF imo

You’re in the wrong thread. This one is about Bolivia

Now, I’m not saying that Bolivia won’t get indebted to China, only that this actions is literally the opposite. When you agree to bilateral trade in another country’s currency, you’re actually going to be buying that countries debt. Look at how China is one of US’s largest bond holders. The trade agreement means Bolivia will want a large reserve of Yuan which leads to Bolivia buying Chinese bonds.

That said, the next action will most likely be what you’re talking about. Much like Egypt after signing a currency swap agreement, Bolivia will likely denominate future debt in Yuan, or what we’ve been calling Panda bonds. Since you can use Yuan now for trade, it makes sense to take out debt in Yuan to fund things.

An example of this not happening however is Argentina. After agreeing to a currency swap with China to trade in Yuan, Mieli got elected and promptly ended that. No indebtedness to China at all.

You can argue that this is an indicator that Bolivia intends to get indebted to China, but this action so far is the exact opposite.