BUENOS AIRES: Argentina and Uruguay will conduct bilateral trade in local currency, replacing the long-held practice of paying each other in U.S. dollars, according to a deal signed on Friday by their respective central banks.
“The adoption of this mechanism will allow the de-dollarization of regional commerce to advance, and deepen trade ties within Mercosur,” said a statement from Argentina’s central bank.
The neighboring countries are part of the Mercosur trade bloc, which also includes Brazil, Paraguay and Venezuela.
Inflation-racked Argentina is allowing its peso to slowly depreciate. The local currency weakened to a record low 9 per U.S. dollar this week, trading Friday at 9.0125 per greenback.
