The agreement aims to promote the development of low-cost financial instruments for operations involving the Argentine Peso and the Uruguayan Peso.
Within the framework of the LXII Meeting of Ministers of Economy and Presidents of Central Banks of Mercosur, which took place in Puerto Iguazú, Misiones, Argentina and Uruguay signed a Letter of Intent on Monday which aims to promote development of low-cost financial instruments for operations involving the Argentine Peso and the Uruguayan Peso.
In the understanding of the reduction of transaction costs to trade in local currencies through the Payment System in Local Currency (SML), which constitutes a stimulus for carrying out foreign trade operations, the president of the Central Bank, Miguel Pesceand its pair from Uruguay, Diego Labat, -who signed the Letter of Intent- committed to work to expand the operations admitted in the current SML between Argentina and Uruguay.
Local Currency Payment System between Argentina and Uruguay: what it is about
The SML allows economic agents Argentina and Uruguay become familiar with the use of the currency of the other country, In addition to promoting progress in the economic integration process and strengthening the links between the institutions that signed the letter of intent, increasing the liquidity and efficiency of the exchange market: Argentine Peso / Uruguayan Peso.
The object sought with this agreement is incorporate payments related to trade in services (except payments related to financial services), transfers for family support and allow the transfer of resources to be denominated in Argentine pesos or Uruguayan pesos without distinction.
The technical and operational aspects of the system What is the Letter of Intent signed by both heads of the central banks, including the requirements for its use, will be stipulated in agreements between the institutions.
Source: Ambito
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