Brazil and Argentina discuss common currency According to Reuters

© Reuters.

By Lisadra Paraguassu

BUENOS AIRES (Reuters) – Brazilian President Luiz Inacio Lula da Silva and Argentina’s leader Alberto Fernandez said Brazil and Argentina work towards deeper economic integration, including the development of a common currency.

“We intend to overcome barriers to our exchanges, simplify and modernize the rules and encourage the use of local currency,” the text was posted on the Perfil website of the company. Argentina said.

“We also decided to promote discussions of a common South American currency that can be used for both financial and trade flows, reducing our operating costs and external vulnerabilities,” he said. the article said.

The idea of ​​a common currency was originally raised in an article written last year by Fernando Haddad and Gabriel Galipolo, now Brazil’s finance minister and executive secretary, and was mentioned by Lula during the campaign. run for election.

Lula chose Argentina for her first international trip since taking office, traditionally visiting Brazil’s largest trading partner in the region for the first time. That comes after four years of strained relations under the government of former right-wing Brazilian President Jair Bolsonaro.

Lula’s trip to neighboring Argentina also marks Brazil’s return to the Community of Latin American and Caribbean States (CELAC), which Brazil left in 2019 at the behest of Bolsonaro, who declined to join. regional grouping due to the presence of Cuba and Venezuela.

Both presidents emphasized the need for good relations between Argentina and Brazil to strengthen regional integration, according to the article.

The leaders also emphasized strengthening the Mercosur trade bloc, which includes Argentina, Brazil, Paraguay and Uruguay, which Brazilian Finance Minister Haddad recently complained has been abandoned in recent years.

“Together with our partners, we want Mercosur to form a platform for our effective integration into the world, through joint negotiation of balanced trade agreements that meet development goals.” our strategy,” both presidents said.

Earlier in the day, the Financial Times reported that neighboring countries will announce this week that they are starting work on a common currency.

The plan, to be discussed at a summit in Buenos Aires this week, will focus on how a new currency Brazil suggests calling “sur” (male) could boost regional trade and reduce dependence on the US dollar, the FT reported citing officials.

Politicians from both countries discussed the idea in 2019, but ran into opposition from Brazil’s central bank at the time.

Initially started as a bilateral project, the initiative will later be expanded to invite other Latin American countries, the report said, adding that an official announcement was expected. Waiting for Lula’s visit to Argentina begins Sunday night.

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