World

Brazil, Argentina drop dollar for bilateral trade

by Luiz Castro | September 7, 2008 at 03:48 pm | 214 views | 1 comment | 0 recommendations

Argentina's President Cristina Kirchner and Brazil's President Lula da Silva at Sept 7 Celebrations

Cristina Kirchner and Lula da Silva celebrating Brazil's Independence Day

President Cristina Kirchner of Argentina was the guest of honor of Brazil’s Independence Day celebrations and next to President Lula da Silva have watched the military parade in Brasilia. In official visit to Brazil, Kirchner have inaugurated a Argentinian Factory in Recife and on Monday Mrs. Kirchner will meet President Lula da Silva and is scheduled to sign a 200 million US dollars credit extended by Brazil’s Economic and Social Development bank, BNDES specifically for Argentine infrastructure projects and export promotion.

Brazil and Argentina are also making agreements dropping dollar for bilateral trade.

Previous coverage

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.