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
Al Mayadeen correspondent: One martyr and one wounded in an Israeli drone attack on the town of Hafir, west of Baalbek, eastern Lebanon.
Al Mayadeen correspondent: An Israeli drone fired three missiles in the vicinity of the town of Bodai, west of Baalbek.
Reuters: The Rapid Support Forces announced that they have taken over the headquarters of the Sudanese Armed Forces in al-Fasher.
Al Mayadeen correspondent: An Israeli drone strike targeted the town of Al-Qlailah, Southern Lebanon.
Al Mayadeen's correspondent in South Lebanon: Israeli drone strikes town of Harouf, Nabatieh district.
Factions' statement: The attendees agreed to support and continue implementing the ceasefire agreement measures, including the withdrawal of the occupation and lifting the siege.
Factions' statement: Calling for an end to all forms of torture and violations against prisoners in occupation prisons and the necessity of obligating the occupation to do so.
Statement: The current moment is crucial, making the meeting a true turning point toward national unity in defense of our people and their right to life, dignity, and freedom.
Factions' statement: Call for an urgent meeting of all Palestinian forces and factions to agree on a national strategy.
Factions' statement: Continuing joint work to unify visions and positions to confront the challenges facing the Palestinian cause.

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

Trump’s $20 bln aid to Argentina sparks backlash among Republicans: FT

Trump 'extorts' Argentinians, links aid to Milei’s midterm success

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

From previous scenes of the Qassam Brigades targeting an Israeli D9 bulldozer with a Yassin 105 shell, east of Deir al-Balah. (Military Media of the Qassam Brigades)

US knew fatal Rafah blast cause was not Hamas op., says journalist

  • Politics
  • 20 Oct 2025
'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Undated photo of Hanwha Ocean’s Goeje Shipyard in South Korea (Hanwha Ocean)
Politics

China counters US maritime bloc with sanctions on Hanwha Ocean

Catherine Connolly speaks after being after being elected as the new President of Ireland at Dublin Castle, Ireland, Saturday, Oct. 25, 2025. (AP)
Politics

Connolly wins Irish presidency in blow to political establishment

Buildings destroyed during the Israeli air and ground offensive are seen in the Al-Shati camp, in Gaza City, Friday, Oct. 24, 2025. (AP)
Politics

'Israel's' post-ceasefire demolitions in Gaza violate agreement: Hamas

Iran's Foreign Minister Abbas Araghchi attends the 17th annual BRICS summit in Rio de Janeiro, Brazil, July 7, 2025 (AP)
Politics

Iran’s Araghchi: Our nuclear bomb is resilience, not weapons

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