Home > Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions
Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions
by Open-Publishing - Sunday 16 March 20081 comment
Economy-budget USA South/Latin America
Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions
www.chinaview.cn 2008-03-16 14:03:09
BUENOS AIRES, March 15 (Xinhua) — Argentina and Brazil are to scrap bilateral commercial transactions in U.S. dollars and start using their own currencies from August, an official in charge of currency settlement at the Argentine Central Bank said here Saturday.
The new payment system is aimed at reducing costs in commercial transactions and would benefit small and medium-sized enterprises, the official said.
Under the new system, there will be a unified exchange rate between the real and peso, the so-called reference rate, which will be applied by Brazilian and Argentine central banks at the end of each day.
Brazilian President Luiz Inacio Lula da Silva reached an agreement to establish a new payment system with his Argentine counterpart Cristina Fernandez de Kirchner during his visit to Argentina in February.
Technical preparations are underway for the new system, which the two countries will adopt in several steps due to the large amount of bilateral trade.
Brazil is Argentina’s largest trading partner, while Argentina is Brazil’s second-biggest trading partner after the United States.
Bilateral trade stood at around 23.6 billion U.S. dollars last year.
Editor: Song Shutao
http://news.xinhuanet.com/english/2008-03/16/content_7800121.htm#
Forum posts
17 March 2008, 09:26, by gmathol
Be afraid! The US will break and its population is less prepared than those of the former Soviet Union. This desperate punks might go for a nuclear war.