Latest update: 13/04/2009 

- Argentina - currencies - dollar - Latin America - trade


Argentina considers dumping dollar in Latin American trade
Argentina considers dumping dollar in Latin American trade
Argentina is to propose to the Latin American Integration Association the idea of ditching the dollar in Latin American trade. It would be an extension of an existing treaty between Argentina and Brazil.

AFP - Argentina is considering dropping the dollar in its trade with other Latin American countries as a way of "obtaining better liquidities," the head of its central bank said Monday.
  
The idea is to be floated at a meeting of the region's biggest economies to be held in the next couple of months, Arnaldo Bocco told El Mundo radio in Buenos Aires.
  
He added that the initiative would be based on expanding a September 2008 treaty between Argentina and Brazil that allows for companies in both countries to trade with each other without using the dollar as a go-between currency.
  
Currently, the US unit is widely used in Latin America as the reference currency in contracts, to minimize the risk of using national currencies that have been victim to hyperinflation and exchange volatility in the past.
  
Bocco said the idea is to be presented in May or June to the Latin American Integration Association, a trade body created in 1980 that today counts Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela as members.

Comments (3)

Argentina drops dollar

by T.S. (not verified) - 08/10/2009 - 02:29

What Argentina is proposing is not radical in the least. OPEC, Russia and China have preliminary agreements to stop trading in the dollar for petro and will implement the Euro instead.

The world has awakened to the reality that our out of control spending and our unnecessary and expensive wars and conflicts coupled with our lack of production in real goods is bankrupting our country. Furthermore, our printing of money in truckloads is not going unnoticed by those that rely on the value of the dollar for stability.

The U.S. is fast losing it's position as top dog in the world economy.

Regional swaps.

by Anonyme (not verified) - 15/04/2009 - 05:09

I would rather think Brazilian Real to be key currency of reference in South America since they have the largest economy. Still the effect on US$ will be not so significant as world trade is mostly in European Union, the British Commonwealth, China and the Far East states of Asia. That is mostly denominated in US$, Euro and a little Yen. China however is creating a Yuan region with ASEAN but it calls for net import trade by China from that region.

Green Dragon

Argentina Wants To Dump The Dollar

by An American (not verified) - 14/04/2009 - 17:52

Perfect idea! Perhaps they could use the Cuban Peso or the Russian Ruble instead. Chavez would love using the Ruble, wouldn't he now? Or maybe Argentina could use all those German Reichsmarks that ended up down there after 1945. Might as well put them to use for something, right?

Related Content
Close