Welcome to Latam Insights, a compendium of the most relevant news on crypto and economic development in Latin America during the last week. In this issue: Latin American nations sign deal to reduce inflation, Brazil-based BTG Pactual launches its own dollar-pegged stablecoin, and Argentina launches another dollar exchange rate.
Latin American countries sign pact to fight inflation
On April 5, eleven Latin American countries, including Argentina, Brazil, Chile, Colombia, Cuba, and Venezuela, signed an agreement to combat inflation by adopting a system that will create facilities for the export and import of basic goods. The priority is to enable citizens to obtain these goods at affordable prices.
For this, the countries agreed “Advance in the definition of commercial facilities, as well as logistical, financial and other measures, that allow the exchange of basic basket products and intermediate goods to take place in better conditions.”
Andrés López Obrador, president of Mexico, who proposed this agreement in March, fixed:
We can make exchanges economically, commercially, if we agree and remove obstacles, tariffs, sanitary measures, and each country has something to offer. All with the purpose that food and basic products can reach a better price.
BTG Pactual launches dollar-pegged stablecoin
On April 4, BTG Pactual, a Brazilian investment bank that reported over $100 billion in assets under management in Q4 2022, launched BTG Dol, a dollar-pegged stablecoin. Touted as the first stablecoin asset launched by a bank, it seeks to bridge the worlds of traditional finance and digital finance in Brazil, allowing users to mint it by paying just 0.5% for the conversion.
André Portilho, Head of Digital Assets at BTG Pactual, fixed that the development of this new stablecoin will provide clients with an “easier, safer, and smarter way to invest in dollars.” The dollar-pegged stablecoin and the funds behind it will be managed by BTG Pactual.
Argentine government launches new dollar exchange rate
The Argentine government offer a new exchange rate for agricultural producers so that they can liquidate their products at a higher rate (300 pesos per US dollar) than was offered before. The goal of the initiative is to accumulate more than nine billion dollars to reinforce the country’s reserves.
The government needs to accumulate at least 8,000 million dollars by December, in order to comply with the agreements made with the International Monetary Fund (IMF). The government has a negative balance, having invested $3.4 billion this year to stabilize the value of the Argentine peso, and facing high levels of inflation and devaluation.
What do you think about the events in Latin America this week? Tell us in the comment section below.
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