SHANGHAI - The Buenos Aires branch of Bank of China transacted the first direct yuan investment in Argentina on Wednesday, state news agency Xinhua reported, marking a further step in the internationalisation of China's currency.

The move comes after Argentina in late April said it aimed to regularly pay for Chinese goods in yuan rather than dollars, a measure that aims to relieve pressure on the country's dwindling dollar reserves.

Xinhua reported that Chinese energy firm Brunp Recycling had injected 428,000 yuan ($58,728) into Argentina and will use the investment to cover the firm's daily operations in the South American country.

China's yuan is gradually being adopted for more international payments, which analysts say could lay foundations for a trade system running parallel to the dominant U.S. dollar.

($1 = 7.2878 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by David Holmes)