Wednesday, May 23, 2007

Dollar Becomes Even More Unpopular

Regional currency to replace dollar in Argentina-Brazil trade

"BUENOS AIRES, May 23 (RIA Novosti) - 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.
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.
Bolivia, Chile, Colombia, Ecuador and Peru have associate member status

Countries around the world are slowly turning their backs on the US dollar. This comes a couple of days after Kuwait suddenly ditching it's ties to US currency.

Of course the greenback doesn't benefit from stories like this.


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