Argentina, Brazil plan to end US dollars in bilateral trade

dpa German Press Agency
Published: Wednesday October 11, 2006

Buenos Aires- Argentina and Brazil plan to do away with the US dollar in bilateral trade from 2007, Argentine media reported on Wednesday. Brazilian President Luiz Inacio Lula da Silva and his Argentine counterpart Nestor Kirchner are expected to establish before the end of the year the details of an agreement whereby the peso and the real will substitute the US currency.

Argentine Finance and Production Minister Felisa Miceli and her Brazilian counterpart for Development and Foreign Trade Luiz Fernando Furlan met on Tuesday in Buenos Aires.

Miceli told the media that the meeting was "very positive" and that they have already established a timeline for the adoption of changes.

Trade between Argentina and its neighbour, the tenth-largest economy in the world, is expected to be between 19 and 20 billion dollars this year, Furlan told Argentine daily Clarin earlier this month.

The Brazilian minister and Miceli also talked about Brazil's intention to participate in 30 projects in Argentina.

On Monday, Furlan announced potential investments of 3 billion dollars by the Brazilian National Development Bank (BNDES) in the field of public transport and in a gas pipeline to Brazil and Paraguay. The minister told Argentine media that those plans do not rely on Lula's re-election and that they would persist if Brazil changes president on January 1.

© 2006 dpa German Press Agency