All Financial Services

March Trade

Without doubt, to the U.S. that the dollar is the leading currency at level world involves a series of not minor benefits, which are currently at a serious danger of fading away. One of them is the senoraje that perceives us by having the power to issue of the world currency leader. The supremacy of the U.S. currency appears to be coming to an end and gradually, the dollar is ceasing to be the only currency used for trade between countries. It is that the international financial crisis has generated a proliferation of bilateral agreements for reciprocal exchange of currencies.

So for example, a few months ago in Latin America, the Governments of Argentina and Brazil, concluded an agreement for the Elimination of the dollar in bilateral trade. Also, in the context of the Asociacion Latinoamericana de integration Aladi-(a body of intergovernmental economic integration of Latin America), being evaluated the use of the currencies of the countries members in trade among these. At the end of March, the President of Brazil, Luiz Inacio Lula da Silva said on the replacement of the dollar as the global currency: when we adopted with Argentina the use of Argentine and Brazilian coins is because we believe that it is possible to not be subordinate to another country’s currency. Making a break with the theme of the dollar, worth mentioning that, if Latin American economies are moving forward in the use of local currencies for international trade, can do so by stability and macroeconomic strength reached. While still have a number of countries, a long way to go (some must be even corrected current path), this fact does not make another thing again highlight the value that has for economies, work to maintain the macroeconomic strength. Returning to the problem of the dollar, China, the largest emerging economy and ambitious objectives of global leadership, he is increasing its efforts to displace the use of the dollar as the currency of trade..