The focus of the tool is that the country that benefits from a surplus in the bilateral balance manages a credit in local currency for 180 days to finance the red that is generated for the counterpart. In this way, alleviate the outflow of dollars from reserves in the midst of a complex situation. Brazil is Argentina’s main trading partner and in the last 15 years local trade has accumulated a deficit of US$52 billion.
In parallel to the conversations between the public sector, the tool is discussed by the private sector. For this, the Minister of Productive Development, who until a month ago served as ambassador to the neighboring country, organized a trade mission, in which the Governor of Entre Ríos Gustavo Bordet participates, along with SMEs from that province, and also the dome of the Argentine Industrial Union headed by its president, Daniel Funes de Rioja.
The industrialists, worried about the difficulties to access the Single Free Exchange Market, seek to speed up the implementation process of the bilateral financing tool. “It is urgent and necessary to move quickly with this mechanism, between the central banks of both countries, of compensation and access in local currency to facilitate our commercial traffic”, said the head of the UIA.
Yesterday, the authorities of the business entity participated in a meeting with the Federation of Industries of the State of São Paulo (FIESP), according to an official statement, in addition to strengthening the Payment System in Local Currency, work was done on “cooperation regulation in terms of technical regulations, the de-bureaucratization of MERCOSUR, initiatives in the field of sustainability that enhance regional value chains, among other issues.
Source: Ambito
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