BUENOS AIRES, Jan 22 (Reuters) – Brazil and Argentina are aiming for greater economic integration, including the development of a common currency, Brazilian President Luiz Inacio Lula da Silva and Argentinian leader Alberto Fernandez said in a joint article they wrote.
“We intend to overcome the barriers to our exchanges, simplify and modernize the rules and encourage the use of local currencies”, specifies the text published on the Argentinian site Perfil.
“We have also decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, thereby reducing operating costs and our external vulnerability,” the article said.
Earlier today, the Financial Times reported that neighboring nations would announce this week that they were starting preparatory work on a common currency.
The plan, due to be discussed at a summit in Buenos Aires this week, will focus on how a new currency that Brazil suggests calling the “sur” (south) could boost regional trade and reduce dependency against the US dollar, FT reported citing officials. .
“There will be . . . a decision to start studying the necessary parameters for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks,” the Argentine Minister of Finance said. ‘Economics Sergio Massa at the Financial Times.
Politicians in both countries previously discussed the idea in 2019, but were rebuffed by Brazil’s central bank at the time.
Initially starting 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 during Brazilian President Luiz Inacio Lula da Silva’s visit to Argentina. which begins Sunday evening.
Reporting by Lisandra Paraguassu; Additional reporting by Jyoti Narayan in Bengaluru; Editing by Tomasz Janowski and Diane Craft
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