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
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children
The Ministry of Health in Gaza: Gaza's hospitals recorded six deaths due to starvation and malnutrition in the past 24 hours, all of them adults
Informed sources to Al Mayadeen: A new chapter in relations between Iran and the International Atomic Energy Agency will begin within the framework of the new law passed by Parliament

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

At least 53 injured in Argentina clashes between police, protesters

Bolivia rejects Argentina's accusations of faking coup

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

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
An explosion seen during an Iranian missile attack on Tel Aviv, Occupied Palestine, June 13, 2025 (AP)

If Iran is attacked again, geography of response may change: IRGC spox

  • Politics
  • 30 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

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