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“Brazil and Argentina are brother countries and we will have increasingly successful relationships with one of our country’s largest trading partners and industry,” Lula wrote on Twitter. “Together we are stronger.”
The two presidents wanted to negotiate lines of credit for Argentine companies buying products exported by Brazilian companies, Brazil’s finance minister Fernando Haddad told the G1 news portal.
According to media reports, the Argentine government also wants to ensure that transactions are settled in Brazilian reais instead of US dollars in order to maintain the central bank’s recently dangerously low dollar reserves. It had recently struck a similar agreement with China.
Recently, the already ailing Argentine economy came under even more pressure. The central bank’s dollar reserves had fallen sharply due to the bad harvest and the resulting lack of foreign exchange earnings. In addition, the Argentine peso lost significant value against the dollar. Inflation in South America’s second-largest economy is now over 100 percent.
(SDA)
Source: Blick
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
