Trip to Brazil to agree on import mechanism

Trip to Brazil to agree on import mechanism
August 28, 2023 – 00:00

The Minister of Economy and presidential candidate of Union for the Fatherland (UP), Sergio Massa, left last night for Brazil to meet with President Luiz Inácio Lula da Silva and his Brazilian counterpart Fernando Haddad, to advance an agreement that allows pay for imports through guarantees in yuan.

The agenda that Massa will carry out tomorrow in Brasilia also contemplates a meeting with the foreign minister of the neighboring country, Mauro Vieira. Massa will be accompanied, among other officials, by the Secretary of Industry, José Ignacio de Mendiguren, and the Argentine ambassador in Brazil, Daniel Scioli, who took care during the last week to harmonize the agendas.

The engineering proposed by the Government of Brazil has two advantages: on the one hand, keeping pace with the income of Brazilian inputs that are essential for the national industry; and on the other, the optimization of the dollars available at the Central Bank.

Massa advanced the possibility of closing an agreement with Brazil during the press conference given in Washington last Wednesday, when he announced the disbursement of US$7.5 billion by the IMF.

For his part, Haddad announced that the mechanism to be used is through a direct conversion of the yuan to the real by the state-owned Banco do Brasil, for a total of up to US$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 done 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, last week. , during the BRICS summit.

Source: Ambito

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