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MovinUp
May 24th, 2007, 08:29 AM
Regional Currency to Replace Dollar in Argentina-Brazil Trade

Argentina and Brazil, South America's two largest economies, will drop the U.S. dollar in favor of a regional currency in their bilateral trade starting in October 2007, Argentine Economics Minister Felisa Miceli said.

The countries' transition to a new currency, as yet unnamed, is part of a pilot project by the South American continent's major trade alliance, Mercosur, to replace the U.S. currency in internal transactions with money of its own, Miceli said.

entire article:
http://en.rian.ru/world/20070523/65966459.html

Speaking ahead of a Mercosur ministerial session in Paraguay, she said the new currency should eventually spread throughout the bloc, which also includes Paraguay, Uruguay, and Venezuela.

Free in Christ
May 25th, 2007, 09:46 AM
What will be the affect of this on the dollar? Given one country may not make a difference but if others begin to move away from the dollar what could happen economically?

In the simplist form: does less demand for the US dollar mean it has less value on the global scale?