Brazil, Uruguay Switch From Dollar to Local Currencies for Bilateral Trade

RIO DE JANEIRO, December 2 (Sputnik) — Brazil and Uruguay have switched from the dollar to local currencies in bilateral trade operations, in accordance with an agreement the two countries signed in November.

On November 2, Brazilian Central Bank President Alexandre Tombini and his Uruguayan counterpart Alberto Grana signed an agreement on the use of local currencies – the Brazilian Real and the Uruguayan Peso — in bilateral trade. The sides expressed hope that the move will help strengthen their economic ties.

"The agreement is a result of long negotiations between the Mercosur member states and [part of the] BRICS' global strategies," professor of International Relations Department of Federal University of Rio de Janeiro Carlos Francisco Teixeira da Silva told RIA Novosti on Monday.

According to da Silva, the move is the "best opportunity for the countries of South America to get rid of old mechanisms of economic regulation imposed by the United States." The practice may be adopted in Paraguay, Bolivia and Venezuela, should it turn out to be successful.

Founded in 1991, Mercosur is a sub-regional economic bloc that includes Argentina, Brazil, Paraguay, Uruguay and Venezuela. Its associate countries are Bolivia, Chile, Colombia, Ecuador and Peru. Mercosur is aimed at facilitating free trade and the free movement of goods, people and currency in the region.

On November 16, Russian President Vladimir Putin said the country plans to leave the "dollar dictatorship" of the market, increasing the use of the ruble and the Chinese yuan in trade operations.