Brazil, Argentina drop dollar for bilateral trade

BRASILIA, Brazil: Brazil and Argentina are ready to stop using U.S. dollars to trade goods between them.

Brazil’s president tells the Buenos Aires-based Clarin newspaper that exports and imports between the two nations will be bought and sold in local currency – reals and pesos.

President Luiz Inacio Lula da Silva did not say when the measure would take effect.

Silva says the move will boost bilateral trade, which reached $US17.6 billion so far this year through July.

During that time, Brazil sold more to Argentina than it bought, building a US$3 billion trade surplus.

Silva and Argentine President Cristina Fernandez plan to sign the deal in Brasilia on Monday. It was first proposed two years ago.

Published: September 7, 2008

Source: Herald Tribune

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