Brazil & Argentina Renews Talks For Common Currency

[RAMROD 117,011]

Argentina and Brazil are in the preliminary stages of renewing discussions on forming a common currency for financial and commercial transactions, reviving an often-discussed plan that would face numerous political and economic hurdles. 

South America’s two largest economies have considered options to coordinate their currencies for decades, often to counter the influence of the dollar in the region. The persistent macroeconomic imbalances of both countries, together with recurrent political obstacles to the idea, has resulted in little practical progress.

On the eve of a meeting Monday in Buenos Aires, Brazil’s Luiz Inacio Lula da Silva and Argentina’s Alberto Fernandez wrote a joint article in Argentine newspaper Perfil noting that sharing their currencies could help boost regional trade. 

The latest proposal comes as Argentina battles the highest inflation in over three decades and as many emerging markets seek alternatives to the strong US dollar. Brazil’s economy is set to post anemic growth this year, while Lula’s new administration plans to boost public spending significantly to meet his campaign pledges.

The negotiations were initiated by Argentina, according to a Brazilian government official. They’re at a very early stage and there’s no deadline for completion, said the official, who asked not to be identified because the discussions aren’t public. 

https://www.bloomberg.com/news/articles/2023-01-22/brazil-and-argentina-discuss-common-south-american-currency

[Poker 3,770]

I think this is fake news. I’ll try to find confirmation from the Brazilian side saying this won’t happen.  Argentinian gov is desperate to rise its deteriorating image before election later this year. Its lack of economy plan and a 100% inflation is dooming the Peronist party. 

[Sneaky Oliver 22,973]

7 hours ago, Poker said:

I think this is fake news. I’ll try to find confirmation from the Brazilian side saying this won’t happen.  Argentinian gov is desperate to rise its deteriorating image before election later this year. Its lack of economy plan and a 100% inflation is dooming the Peronist party. 

It’s not fake but I’m still undecided if I think that’s a good or bad idea. I don’t understand a lot about economy. The thing is Brazil currency is “superior” (for the lack of a better word) than Argentina’s so I don’t know if both countries are gonna benefit equally from this. But anything to counter the dollar is welcome I guess. Latin America should not be so dependent of the US 

Also we already have Mercosur which includes Argentina, Brazil, Paraguay and Uruguay so a common currency could apply to all of them similar to euro in the EU