De-dollarization of trade with Brazil | Proposal of the government of Lula da Silva

he The Government of Brazil suggested that Argentina pay for Brazilian exports in yuan To avoid dependence on central bank dollar reserves and maintain the flow of bilateral trade, as announced on Wednesday by the Minister of Economy of the neighboring country Fernando Haddad.

“We have sent to the Argentine government a Proposal to guarantee the yuan for Brazilian exportsHaddad said in a press conference held in Johannesburg, where the BRICS summit (Brazil, Russia, India, China and South Africa) is taking place, that it is good for Brazilian exporters, and it will be good news if Argentina accepts. ).

The Brazilian government confirmed that the agreement is in Argentine yuan and real reserves Eliminates the possibility of non-compliance by argentina. According to the minister, the operation involves a direct conversion of yuan into riyals by the state-owned Banco do Brasil in London, with a total amount of $140 million.

“the Brazilian exporters may have some flow of sales of their products with 100 percent guarantee. For Brazil, there is no problem, because the exchange rate will be in yuan against the real and this also assures the national treasury that there is no risk of default. Haddad said that the guarantee that the Ministry of Treasury considered sufficient and that the Bank of Brazil accepted as it was presented.

As a result of the drought in Argentina and the consequent lack of income in foreign currency from the sale of grain, the governments of Argentina and Brazil are negotiating a mechanism to facilitate the payment of 200 Brazilian export companies selling in Argentine territory without having to wait for the influx of reserves into the Central Bank.