2023-08-23 16:02:01
BRASILIA, (Xinhua) – Brazilian President Luiz Inácio Lula da Silva said Tuesday that his government is studying the possibility of using the yuan in commercial transactions with Argentina.
The use of the Chinese currency could help the neighboring country, which is going through a serious financial crisis, said the president in the “Conversation with the President” program of the state-owned Brazilian Communication Company (EBC) and broadcast on social networks.
Lula da Silva, who is in South Africa participating in the XV Summit of the BRICS group (Brazil, Russia, India, China and South Africa), once again defended the need to find alternatives to the US dollar in commercial transactions between countries.
“(Fernando) Haddad (Brazilian Finance Minister) was talking with Argentina, and it is possible that we will help Argentina by using the yuan as a currency (for trade),” the president explained on the program.
For months, the Brazilian government has been discussing ways to help Argentina, its main partner in Mercosur – a bloc that also includes Paraguay and Uruguay – and guarantee payment for Brazilian exports to the neighboring country.
«There are countries like Argentina that cannot buy dollars at the moment, they are in a very difficult situation because they do not have them. To sell to Brazil, they should not need dollars. Let’s change our currencies and the central banks will make the arrangements at the end of the month,” argued Lula da Silva.
The president, who has defended the creation of a common currency in the region, once again stressed the importance of reducing dependence on the dollar when carrying out commercial exchanges.
«We cannot depend on a single country that has the dollar, on a single country that puts more money into circulation in dollars and we are forced to live from the fluctuation of that currency. It’s not good,” Lula said.
Last March, the Central Bank of Brazil announced the signing of a memorandum of understanding with the central People’s Bank of China so that commercial transactions between the two countries can be carried out by converting reais into yuan and vice versa, without the need for the dollar as an intermediary.
In April, the Argentine government announced the adoption of the yuan to pay for imports from China.
Xinhua (xinhua-news.com)
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