Argentina, one step closer to joining the BRICS Bank | China received strong approval from Brazil as a member of Massa

Special Consul for Shanghai and Beijing

On one of the top floors of the New Development Bank building in Pudong, Shanghai, the voice Dilma Rousseff: “I have good news to give you,” the president of the BRICS bank told Economy Minister Sergio Massa, who began to deliver a speech. With an attentive ear, Maximo Kirchner, who accompanied the minister to the rally, also paid attention. What’s new is that the credit union’s board of directors, with Brazil’s backing, agreed to discuss Argentina’s membership of the bank at a meeting in South Africa in August. At the same time, the merger of three countries including Zimbabwe, Saudi Arabia and Egypt will also be discussed.

“It’s a good decision.”, Massa made his own point after leaving a meeting in China’s financial nerve center. The news was celebrated as Massa suffered internal and external disintegration over allegations that he refused to cooperate with Argentina over Brazilian funding. Although this near-virtual integration does not result in cash payouts, it is an asset for the minister that he wishes to demonstrate. They give him money, but instead carve out expanding financial plans.

One of Massa’s conflicts over Brazil was with President Alberto Fernández, who let slip through various media outlets that Lula da Silva was unwilling to support Argentina. In light of the facts, it is worth clarifying that Brazil’s actions are particularly unusual in an interlocutor seeking to help. One of those gestures was Brazilian Economy Minister Fernando Haddad’s unfulfilled promise to Argentina to close a financing deal for Brazilian imports with financing from investment banks and BNDES.

In this situation, although Massa differs – it was raised in the conversation with Dilma – BRICS is not Brazil’s policy, but he believes that the neighboring country’s motivation to sponsor Argentina is necessary. Officials close to the minister said Page I12 Massa said he did not know the news beforehand and sent him a WhatsApp message to inform President Alberto Fernández that he was on his way to Bolivia to inaugurate a gas pipeline project.

Timing and technical aspects

According to the BND’s internal regulations, BRICS bank member countries must make a capital contribution, in this case, 25 percent of a total of $1 billion each. In principle, Argentina will achieve this goal through the Ansus Guarantee Fund, the Central Bank (BCRA) and sovereign bonds from the National Treasury. During the forty hours that the meeting lasted, Dilma recalled having a Zoom meeting with Massa on May 25 and doing the same with Cristina Kirchner, a detail the Brazilian told Maximo Kirchner.

The BRICS bank chief showed his willingness to play hardball and extended his support to Massa. The fact that Argentina and the three proposed countries will confirm their entry into the organization at the summit in August leaves maturity beyond temporary speculation.

The yuan and the IMF continue

This Friday, Massa, who has already arrived in Beijing, will meet with the head of China’s central bank to seal the expansion of the liquid currency available in the yuan exchange agreed between the countries. BCRA president Miguel Bess will also be present at the meeting. The idea is to expand today’s current 5,000 billion liquid dollars, out of a total pool of 18 billion, by three billion. 8000 billion will be available to the minister for free while waiting for the resolution of the agreement with the fund.

In parallel, in the context of the Minister of Economy, they are already preparing a trip to Washington, which will be only after Massa arrives in Buenos Aires after his tour of China. The minister will go to sign the agreement with the company, which has two premises, where the deputy minister Gabriel Rubinstein and the head of the finance cabinet Leonardo Madgur worked: this will follow the authorization to intervene in the exchange market. and, in parallel, will demand that expenditure be taken care of, but that the action of public works shall be executed. The famous “front-loading” by the organization headed by Kistalina Georgieva, the amount of the advance of more than 10 billion dollars, which can be adapted for such purposes, will be discussed.