Brazil, Argentina to end US dollar in trade

BRASILIA: The presidents of Brazil and Argentina signed an agreement Monday to stop using the dollar in bilateral trade, but it will be up to traders to decide if they want to end use of the U.S. currency.

Brazilian President Luiz Inacio Lula da Silva and Argentina's Cristina Fernandez hope the measure will smooth trade transactions between the two nations _ which are forecast to top US$30 billion this year.

But it is unclear how many exporters and importers will decide to do away with the dollar when the measure takes effect in early October.

Silva says it will reduce transaction costs for both exporters and importers, especially those operating on a smaller scale.

Alexandre Barros, an analyst with the Brasilia-based Early Warning political risk consultancy, says the dollar's fall in the past year has prompted many nations to look for alternative currencies to use for trade.