The plan will require a change in law in the two countries before it can be implemented, although senior managements at the central banks hope that it should be in place by mid-2007.
The proposal will allow importers and exporters to trade directly in their respective local currencies. So, for example, an Argentine importer will be able to pay in pesos, and the Brazilian exporter will receive its payment in reais. These payments are then processed via the central banks, which set the exchange rates each day.
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