Argentina and Brazil agree to stop doing business in dollars

this is interesting... just as a point of information for those who might not know, all real estate transactions here in argentina are done in u.s. dollars... up until the economic collapse in 2001, the peso was valued 1:1 to the dollar and dollars and pesos were equally acceptable as payment... even today, atm's still give you a choice of currency - pesos or dollars... i see this as one more step for argentina in abandoning the dollar completely...

Argentina and Brazil are to scrap bilateral commercial transactions in U.S. dollars and start using their own currencies from August, an official in charge of currency settlement at the Argentine Central Bank said here Saturday.

The new payment system is aimed at reducing costs in commercial transactions and would benefit small and medium-sized enterprises, the official said.

Under the new system, there will be a unified exchange rate between the real and peso, the so-called reference rate, which will be applied by Brazilian and Argentine central banks at the end of each day.

Brazilian President Luiz Inacio Lula da Silva reached an agreement to establish a new payment system with his Argentine counterpart Cristina Fernandez de Kirchner during his visit to Argentina in February.

Technical preparations are underway for the new system, which the two countries will adopt in several steps due to the large amount of bilateral trade.

Brazil is Argentina's largest trading partner, while Argentina is Brazil's second-biggest trading partner after the United States.

Bilateral trade stood at around 23.6 billion U.S. dollars last year.

yet another chapter in the global economic soap opera and the continuing collapse of the u.s. dollar...

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