Economic Cooperation A Currency In Brazil And Argentina

It is the goal of Brazil and Argentina to improve their economic ties. Discussions of a widespread South American currency are a part of this.

However, there would still be a long way to go before that. Argentina and Brazil, the two nations in South America, want to move the discussions about a single South American currency forward.

In a joint article for the website of the argentine weekly newspaper "Perfil," the left-wing presidents of Brazil and Argentina, Luiz Inacio Lula da Silva and Alberto Fernandez, stated their desire to strengthen bilateral economic ties. Another factor at play in this is the development of a single currency.

The Financial Times stated that the neighboring nations intended to begin making preparations for a common currency in the coming weeks. In 2019, politicians from both nations had already discussed the idea, but the Brazilian central bank had expressed concerns at the time.

There has been no decision made There are other issues with the current plans, such as Fernando Haddad, the finance minister of Brazil, who over the weekend downplayed the notion of a single currency. We're looking for a solution, something universal that could boost trade, he told reporters, adding that "trade is really bad and the problem is FX, isn't it?.

There has not yet been a decision made. Reduce Dependence on the US Dollar The new currency, reportedly to be called "Sur" (South), is to be " Mercosur should be strengthened The two heads of state Lula and Fernandez also want to strengthen the South American economic organization Mercosur.

Argentina, Brazil, Paraguay, Uruguay, and Venezuela are members of the Mercosur, a regional grouping of South American nations. The bilateral project might eventually be expanded to include other Latin American nations if the introduction of the common currency is successful.

According to the "Financial Times," a currency union that encompasses all of Latin America could be responsible for about 5% of the world's GDP. The euro zone's share of the world economy in 2021 will be 14 point 8 percent, compared to the United States' monetary union's share of more than 15 percent.

The next step would be the formation of a monetary union in Latin America. Re-entry of Brazil into CELAC Under Jair Bolsonaro, a right-wing populist who succeeded Lula, tensions between Argentina and Brazil had been high.

Lula, who served as president of Brazil from 2003 to 2010, had already decided to travel to Argentina on his first international trip while in office as a sign of goodwill. Brazilian membership in the Community of Latin American and Caribbean States (CELAC) has been restored as a result of Lula's visit to the neighboring nation.

According to Bolsonaro's orders, Brazil left the confederation in 2019 because Cuba and Venezuela were still a part of it. Bolsonaro had previously refused to join. Who served as President of Brazil from 2003 to 2010, has already decided to travel to Argentina on his first overseas trip while in office.

Brazilian membership in the Community of Latin American and Caribbean States (CELAC) has been restored as a result of Lula's visit to the neighboring nation. According to Bolsonaro's orders, Brazil left the confederation in 2019 because Cuba and Venezuela were still a part of it. Bolsonaro had previously refused to join.

Who served as President of Brazil from 2003 to 2010, has already decided to travel to Argentina on his first overseas trip while in office. Brazilian membership in the Community of Latin American and Caribbean States (CELAC) has been restored as a result of Lula's visit to the neighboring nation.

According to Bolsonaro's orders, Brazil left the confederation in 2019 because Cuba and Venezuela were still a part of it. Bolsonaro had previously refused to join.

Brazilian membership in the Community of Latin American and Caribbean States (CELAC) has been restored as a result of Lula's visit to the neighboring nation.