He Central Bank of Uruguay (BCU) and the Central Bank of the Argentine Republic (BCRA) sealed the agreement of the new Operating Regulations of the Local Currency Payment System (SML) between the two countries, which seeks to reduce trade costs and stimulate operations.
After the signature of the president of the BCU, Diego Labat, its counterpart from the BCRA, Miguel Pesce; and the general secretary of the BCU, George Christy, the agreement was initialed by the SML, which will allow both nations to make payments for goods and services, both in Uruguayan pesos and in Argentine pesos, as had been signed in a letter of intent on July 3.
labat He stressed that “it was a long process”, but appreciated that the signing of the agreement “will make the system operational”, something that he considered “an important step”. Regarding the application of the system, he explained that “the main change is that now we are including payment for services, except financial.”
For the owner of BCU, Another substantial modification is “the invoice currency” and it graphed: “The Uruguayan or Argentine companies They can invoice in Uruguayan pesos or in Argentine pesos, indistinctly. I think that this will facilitate trade.”
“Our obligation, as Central bank, it is that the system works better and better”, he concluded when assessing the SML, which also admits transfers as family aid and those classified as retirement and pensions, when there is a bilateral agreement signed between the pension institutes of both countries.
In Argentina they value foreign currency savings
Regarding the look of the president of the BCRA, the use of local currencies for foreign trade “contributes to achieving foreign currency savings and strengthening their respective external positions”, in addition to “mitigating the effects of fluctuations in international liquidity cycles, increasing macroeconomic sustainability and promoting economic development region of”.
For Pesce, “from the users’ point of view, the SML promotes a reduction in transaction costs.” In addition, it assessed that “they have access to a more competitive exchange rate representative of the wholesale market, regardless of the volume of the transaction and avoid the exchange rate spread for using the currency of a third country.”