The Minister of Economy and presidential candidate of Union for the Fatherland (UP), Sergio Massa, will leave tonight for Brazil to meet with President Luiz Inácio Lula da Silva and his counterpart Fernando Haddad, to advance an agreement that allow pay imports through the swap agreed with China.
The agenda that Massa will carry out tomorrow in Brasilia It also contemplates a meeting with the foreign minister of the neighboring country, Mauro Vieira.
In these meetings, the details of an agreement will be advanced so that imports from Brazil can be paid through yuan available from the swap agreed with the Asian giant.
Massa will be accompanied, among other officials, by the Secretary of Industry, Jose Ignacio de Mendigurenand the Argentine ambassador in Brazil, Daniel Scioliwhich took care during the last week to harmonize the agendas.
Imports with swap: what are the advantages
This engineering proposed by the government of brazil has two advantages: on the one hand, to maintain the rhythm of the income of Brazilian inputs that are essential for the national industry; and on the other, the optimization of the resources in dollars available at the Central Bank.
Massa advanced the possibility of closing an agreement with Brazil in this sense during the press conference given in Washington last Wednesday, when he announced the disbursement of US$7.5 billion by the International Monetary Fund (IMF) after the approval of the fifth and sixth review of the agreement with the multilateral organization.
“We will be traveling to Brazil to further ease the procedure for using reserves, at a time when we have to take care of them,” Massa said on that occasion.
Imports with swap: what will the mechanism be like?
For his part, on the side of the Brazilian government, the Minister Haddad advanced that the mechanism that will be used is through a direct conversion from yuan to real by the state-owned Banco do Brasil, for a total of up to 140 million dollars.
“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,” Haddad said during a conference he gave in Johannesburg, South Africa, in the middle of last week, on the sidelines of the summit of the countries that make up the BRICS.
Last May, the President Alberto Fernandez and Lula da Silva They talked in Brasilia about the possibilities of financing Brazilian exports, but Brazil was looking for greater guarantees due to the lack of dollars from Argentina.
The powerful Federation of Industries of the State of São Paulo had demanded that the Government find mechanisms to prevent lose marketsdue to the obstacles that currently exist due to the lack of foreign currency so that external sales are compensated.
Argentina achieved through thesane swap agreement with China maintain the commercial flow with the asian country, something that Brazil was looking for, whose main industrial exports go to the Argentine market.
Argentina is he third trading partner of Brazil after China and the United States, but unlike the first two, it is the main buyer of industrialized products.
The agreement of both nationals will be formalized within the framework of the brand new incorporation of the Argentina to the BRICS group of emerging economies, made up of Brazil, Russia, India, China and South Africa.
The role of Brazil through President Lula it was transcendental for the entry of Argentina to the Brics, which represent 24% of global GDP, 16% of exports and 15% of exports world imports of goods and services.
Source: Ambito
