In the context of the 30th Meeting of South American Central Bank Presidents held in Asunción on October 23, 2015, the Central Bank of Paraguay (BCP) and the Central Bank of Uruguay (BCU) signed an agreement to facilitate transactions between Paraguay and Uruguay in local currencies and to reduce transfers is US dollars between the two countries.
To access the text of the agreement here.
The Bilateral Agreement on the Local Currency Payment System (SML) is designed to permit payments for transactions of any kind between individuals and legal entities residing, domiciled or with offices in Paraguay and Uruguay.
The agreement allows transaction payments to be made in local currency of either of the countries. Parents, branches or affiliates of commercial banks and financial entities authorized by BCP and BCU will be able to operate under the SML agreement, and will be responsible for recording SML transactions and payments.
Finally, SML use will be voluntary and will take effect as of signature of the agreement’s regulations, which is expected to take place in the first half of 2016.
Contact
Alfonso Capurro: drodriguez@ferrere.com
Carlos Vasconsellos: cvasconsellos@ferrere.com