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Argentine President Fernando de la Rua, battling to rescue the recession-hit economy in the throes of a slump in local financial markets and loan-default fears, will meet neighboring Brazil’s leader today to discuss economic and trade issues.
Government officials have been worried about the nearly 30% slide in the value of Brazil’s real currency, which has contributed to Argentina’s three-year-long economic downturn by making its exports more expensive.
Economists say the disparity in the two countries’ currency regimes--Argentina has its peso currency pegged to the U.S. dollar--could threaten the future of the Mercosur trading bloc, which includes Paraguay and Uruguay.
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