Brasília – The minister of Finance of Brazil, Guido Mantega, informed today (08) that the agreement between the Central Banks of Brazil and Argentina for use of local currencies in trade transactions should be enacted on October 6, in a test phase.
The agreement was signed today by president Luiz Inácio Lula da Silva and by Argentine president Cristina Kirchner.
According to the minister, transactions in local currencies should make it possible for smaller companies to participate in bilateral trade.
"This agreement is going to add value to the local currencies, as, up to now, it was necessary to use an intermediary currency (the dollar); this is no longer necessary. In the long run, this is heading towards the establishment of a single currency in the Mercosur. It is a first step," he explained.
Mantega believes that the agreement may be extended to the other countries in the bloc. "Once this first step is taken, it will be possible to do the same with other countries," he said.
According to the minister of Finance, trade between Brazil and Argentina has a turnover of US$ 25 billion, and the neighbouring country is the third main trade partner of Brazil.
*Translated by Mark Ament
