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Brazil's Finance Minister Opposes Dollarization in Argentina
Brazilian Finance Minister Pedro Malan said on Friday that he opposes the US dollarization in Argentina, reports reaching in Brasilia said.
At a conference at the New York Stock Exchange, the minister said that dollarization in a country like Argentina would not be feasible.
"There are islands in the Pacific, like the Solomon or some other small countries like Ecuador, where dollarization can successfully take place. But in Argentina that would be a mistake, " he said.
Malan, together with the heads of Brazil's 20 top companies, was attending "Brazil Day," a promotional event on the New York Stock Exchange to celebrate the good performance of Brazilian stocks listed there.
According to the minister, it would be more effective to seek a solution to Argentina's economic problems via other mechanisms.
He said the Brazilian government does not rule out the possibility that in the future of the South American Common Market (Mercosur) there could be a single currency, which fluctuates in relation to the U.S. dollar, the euro or the Japanese yen.
Malan also said it would have been a serious mistake if rich countries had denied financial aid to Argentina. Although Argentina has been beset by a three-year-long recession, Argentina has the conditions to overcome difficulties, he stressed.
A short time ago Argentina received an 8-billion-dollar assistance package from the International Monetary Fund.
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