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Welcome to Latam Insights! This is a compilation of the most relevant crypto and economic development news from Latin America over the past week. In this issue: Latin American countries sign an agreement to reduce inflation, Brazil-based BTG Pactual launches its own dollar-pegged stablecoin, and Argentina launches yet another dollar exchange rate.
Latin American countries sign agreement to fight inflation
On April 5, 11 Latin American countries, including Argentina, Brazil, Chile, Colombia, Cuba, and Venezuela, signed an agreement to fight inflation by adopting a system that creates facilities for the import and export of basic goods. The priority is to ensure that citizens have access to these goods at affordable prices.
To this end, the countriesagreedto “advance the definition of commercial facilities that will allow the exchange of the basic basket of products and intermediate goods on better terms, as well as logistical, financial and other measures.”
Mexican President Andrés López Obrador, who proposed this agreement in March,said:
We can exchange economically and commercially. If we agree and remove obstacles, tariffs and sanitary measures, each country has something to offer. All for the purpose of food and basic products arriving at better prices.
BTG Pactual launches dollar-pegged stablecoin
On April 4, Brazilian investment bank BTG Pactual, which reportedover $100 billion in assets under management in the fourth quarter of 2022, launched the dollar-pegged stablecoin BTG Dol. Billed as the first stablecoin asset launched by the bank, the product aims to bridge the worlds of traditional and digital finance in Brazil and allows users to mint it by paying just 0.5% for conversion.
Andre Portillo, head of digital assets at BTG Pactual,said that the development of this new stablecoin will offer customers “an easier, safer, and smarter way to invest in dollars.”The dollar-pegged stablecoin and the funds supporting it will be managed by BTG Pactual.
Argentine government unveils new dollar exchange rate for the first time
The Argentine government willoffer agricultural producers a new exchange ratethat will allow them to liquidate their produce at a higher rate than before (300 pesos per US dollar). The goal of this initiative is to accumulate more than $9 billion to strengthen the country’s reserves.
The government must accumulate at least $8 billion by December to comply with its agreement with the International Monetary Fund (IMF). The government has invested the funds and has a negative balance.