ARGENTINA, BRAZIL COMMON CURRENCY?

Pablo Hoffman writes:

Argentina and Brazil will begin preparations to create a common currency, Argentina's economy minister has said. Sergio Massa said that the two countries would soon decide to start studying the parameters needed for a common currency. Massa said the currency would initially be a joint Argentine-Brazilian endeavour, which other Latin American countries could later adopt.

To read the complete article (subscription required), see:
Argentina and Brazil to begin studying common currency (https://www.centralbanking.com/central-banks/currency/7954281/argentina-and-brazil-to-begin-studying-common-currency)

 
Argentina's President Alberto Fernandez greets Brazil's President Luiz Inacio Lula da Silva

Brazil and Argentina aim for greater economic integration, including the development of a common currency, Brazilian President Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez said in a joint article they penned.

"We intend to overcome the barriers to our exchanges, simplify and modernize the rules and encourage the use of local currencies," says the text published on the Argentine website Perfil.

"We also decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, reducing costs operations and our external vulnerability," the article said.

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

Lula chose Argentina for his inaugural international trip since taking office, keeping with the tradition of first visiting Brazil's largest trading partner in the region. That follows four years of tense relations during the government of former Brazilian right-wing President Jair Bolsonaro.

Lula's trip to neighboring Argentina also marks the return of Brazil to the Community of Latin American and Caribbean States (CELAC), which Brazil left in 2019 under order from Bolsonaro, who refused to participate in the regional group due to the presence of Cuba and Venezuela.

Both presidents emphasized the need for a good relationship 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, and which Brazilian Finance Minister Haddad recently lamented has been abandoned in recent years.

To read the complete article, see:
Brazil and Argentina to Discuss Common Currency (https://money.usnews.com/investing/news/articles/2023-01-22/brazil-and-argentina-to-begin-preparations-for-common-currency-ft)

To read the Financial Times article (subscription required), see:
Brazil and Argentina to start preparations for a common currency (https://www.ft.com/content/5347d263-7f24-4966-8da4-79485d1287b4)

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