The Minister of Economy, Sergio Massa, announced that he will travel next Monday to Brazil to meet with his peer from the Treasury, Fernando Haddad, with whom it will sign a mechanism that allows financing imports from that country to Argentina and, thus, avoid using dollars from international reserves.
In this regard, the head of the Palacio de Hacienda said that “surely” “Minister Haddad and President Lula” Da Silva will participate in the meeting.
“We sent the Argentine government a guarantee proposal in yuan for Brazilian exports. For Brazilian exporters it is a good thing, it will be good news if Argentina accepts,” Haddad announced at a press conference held in Johannesburg, where the out the Brics Summit (Brazil, Russia, India, China and South Africa).
The Brazilian government maintained that the agreement in yuan of the Argentine and real reserves removes the possibility of default by Argentina, and according to the minister, the operation implies the direct conversion of the yuan into real by the state Banco do Brasil in London, for a total of up to $140 million.
“Brazilian exporters can have some flow of sales of their products with 100% guarantee. For Brazil, there is no problem, because the exchange rate will be made with the yuan for the real and this also assures the National Treasury that there is no risk of default. A guarantee that the Treasury considered adequate and that Banco do Brasil accepted, as presented,” Haddad said.
As a result of the drought suffered by Argentina and the consequent lack of foreign currency income from the sale of grains, the governments of Argentina and Brazil are negotiating a mechanism to facilitate payment to 200 Brazilian exporting companies that sell in Argentine territory without having to wait for the flow of reserves in the Central Bank.
Source: Ambito
