Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: Final toll from airstrike on car in Zebdine, Nabatieh District: Two martyrs, four injured
Egyptian media: Indirect talks between Hamas and Israelis begin in Sharm el-Sheikh.
AFP: France's new PM Sebastein Lecornu resigns just hours after unveiling cabinet.
Trump: Technical teams will meet again on Monday in Egypt to discuss and clarify the final details, and the first phase is scheduled to be completed this week
US President Donald Trump: Talks with Hamas have been very successful and are moving at a rapid pace
Local sources in Aleppo: Violent clashes erupt between the SDF and factions affiliated with the transitional authority on the Deir Hafer and Tishrin Dam fronts in the eastern Aleppo countryside
Israeli media: Interceptor missiles fired in an attempt to shoot down the drone
IOF Spokesperson: Sirens sounded amid suspected "enemy aircraft" infiltrating the Eilat area
Israeli media: "Israel" won the battle but lost the war strategically and politically
Israeli media: Ben Gurion Airport's airspace closed to air traffic following missile launch from Yemen

Argentina and Brazil inching closer to common currency for trade

  • By Al Mayadeen English
  • Source: News websites
  • 3 May 2023 16:04
  • 2 Shares
4 Min Read

Brazil’s Deputy Minister of Economy Gabriel Galipolo explained that a plan involves a line of credit to finance Brazilian companies that export to Argentina to avoid using the dollar. 

  • x
  • Argentina and Brazil inching closer to common currency for trade
    Brazilian President Luiz Inacio Lula da Silva during his official visit abroad at the Casa Rosada presidential palace in Buenos Aires on January 23, 2023. (Reuters)

Argentine President Alberto Fernández and his Brazilian counterpart, Luiz Inácio Lula da Silva, have pledged to develop a framework for using their own currencies in bilateral commerce amid a rising trend of many nations dumping the US dollar in trade transactions.

Last month, Lula called on countries of the Global South to work toward ditching the USD in their international trade and resort to their own currencies instead. 

The two left-wing presidents of MERCOSUR's two main Southern Common Market partners gathered in the Brazilian capital on Tuesday to discuss measures to expand trade.

“The meeting was long, difficult and we will carry out many more meetings,” Lula said alongside Fernández when speaking to the press.

“I made a commitment to my friend Alberto Fernández that I will do every and any sacrifice so we can help Argentina in this difficult moment.”

“They’ve made the decision to help make sure that Brazilian companies continue exporting to Argentina and they had asked us to do some homework, which we have already done, and have to do with the necessary guarantees,” Fernández said.

Brazil’s Deputy Minister of Economy Gabriel Galipolo stated that the plan involves a line of credit to finance Brazilian companies that export to Argentina to avoid using the dollar. 

Read more: Future of global economy belongs to SCO, BRICS: Iran Econ Minister

Galipolo stated that his administration advocated the establishment of a special line of credit for Brazilian enterprises exporting to Argentina in local currency in order to preserve the flow of bilateral commerce between the two Latin American economic giants.

Related News

Milei dealt crushing defeat in Buenos Aires provincial election

At least 53 injured in Argentina clashes between police, protesters

Abandoning US dollar

In an interview with the local GloboNews network, the official went on to say that using the US dollar for commerce has cost the country billions of dollars.

“In the last five years, due to Brazil’s lack of mechanisms to finance its exports and Argentine imports, we have lost approximately $6 billion of space in the trade balance with Argentina to China, which has been providing financing mechanisms in alternative means of payment, such as swaps, or giving credit to the exporter,” Galípolo highlighted.

Argentina and Brazil aim to employ a mechanism similar to the swaps with China for international commerce under the new deal, which will remove the dollar as a payment currency.

Argentine importers will therefore be allowed to pay in pesos, while the Brazilian government will convert payments for trade transactions into reais.

The move comes amid efforts by an increasing number of countries across the world to abandon the US dollar in favor of trading partners' indigenous currencies. As more countries abandon the dollar, the worldwide trend of substituting local currencies for the US dollar in commercial transactions accelerates.

Argentina declared last week that in order to protect its foreign reserves, it will pay for Chinese imports in yuan rather than dollars.

After a meeting with Chinese Ambassador Zou Xiaoli, Massa asserted that "Argentina must keep its foreign reserves robust" after the worst drought in history.

Argentina plans to pay for almost $1 billion in Chinese imports in yuan rather than dollars in April, and approximately $790 million in monthly imports will be paid in yuan thereafter, according to a government statement.

It is noteworthy that earlier this month, Lula officially announced Brazil's return to UNASUR. In 2019, the Brazilian government of then-President Jair Bolsonaro withdrew from the bloc by presidential decree, without going through Congress.

On its part, Argentina also recently announced its return to the bloc, currently made up of Bolivia, Guyana, Suriname, and Venezuela, in addition to the suspended Peru.

Read more: Brazil's Lula will not visit Russia or Ukraine until de-escalation

  • Brazil
  • Argentina
  • Luiz Inácio Lula da Silva
  • Alberto Fernandez
  • de-dollarization
  • Buenos Aires
  • Brasilia

Most Read

Hamas fighters stand in formation ahead of a ceremony to hand over Israeli captives to the Red Cross in Nuseirat, Gaza Strip, Feb. 22, 2025. (AP)

Hamas reviews Trump’s Gaza ceasefire plan as PIJ rejects

  • Palestine
  • 30 Sep 2025
Iraq at a crossroads: A new war front?

Iraq at a crossroads: A new war front?

  • West Asia
  • 30 Sep 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025

Coverage

All
War on Gaza

Read Next

All
French far-left leader Jean-Luc Melenchon, listens to France Unbowed party parliament member Mathilde Panot during a demonstration after a Gaza-bound aid flotilla was illegally raided by the IOF, Thursday, Oct. 2, 2025 in Paris (AP)
Politics

French MPs on hunger strike after their detainment in 'Israel'

Gaza residents fear trap as Trump’s plan offers little relief
Politics

Flying promises and bombs: Gazans hopeful, yet deeply distrustful

Two years of destruction: Gaza endures war, famine, and displacement
Politics

UNRWA details Gaza's two years under war, famine, and displacement

In this photo provided by the North Korean government, North Korean leader Kim Jong Un, center, visits a military hardware exhibition in Pyongyang, Notrh Korea Saturday, Oct. 4, 2025 (AP)
Politics

DPRK's Kim unveils new advanced weapons at 'Defiance Development 2025'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS