Argentine officials will begin by outlining a negotiation to boost bilateral trade that will exclude the dollar, a difficult issue for Argentina, and one which Brazil is willing to agree to. Beyond the financing lines, the agreement that Argentina and Brazil intend to sign involves excluding the dollar as payment currency for foreign trade, a mechanism similar to the swaps with China. Argentine importers will be able to pay for their purchases in pesos and the Brazilian government will convert them into reais. According to the Brazilian Vice Minister of Finance, around 210 Brazilian companies trade with Argentina. Will the volume of pesos obtained from the sale, when it is converted to [Brazilian] real, be enough to pay the debt?

Source: Bueno Aires Herald May 02, 2023 12:58 UTC