The President of Brazil, Luiz Inácio Lula da Silva, is currently making a state visit to his Argentine counterpart Alberto Fernández, although from Tuesday he will participate in the Community of Latin American and Caribbean States (CELAC) that will take place in that country.
One of the actions that has generated interest is the start of conversations for the creation of a new currency that would not only cover both countries. In a statement, the Casa Rosada indicated that within the dialogue that Da Silva and Fernández will maintain is to reactivate spaces for cooperation and dialogue in various areas.
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“We decided to advance discussions on a common South American currency that can be used for both financial and trade flows, reducing operating costs and reducing our external vulnerability,” the statement added.
In the same way, it is proposed to update Unasur.
Regarding the currency, the Argentine Economy Minister, Sergio Massa, said in the Financial Times that this is the beginning of a long road and parameters such as fiscal issues, the size of the economy and the role of central banks should be studied.
With respect to the name, it was initially proposed that it be called ‘South’, although with the passage of time and until more aspects are defined, its name may change. It is not ruled out that other countries may join the proposal and this will work in parallel with the Argentine peso and the Brazilian real.
One of those who has expressed his support for the proposal is the tycoon Elon Musk, who through his Twitter account. “It’s probably a good idea.”
Brazil and Argentina are members of Mercosur along with Uruguay and Paraguay.
Brazil is Argentina’s main trading partner, according to official figures released last week by national statistics agency INDEC.
With 14.3% of total Argentine sales abroad, the South American giant is the number one destination for Argentine exports, which in 2022 totaled almost 12.7 billion dollars, a growth of 7.6% compared to the previous year. Meanwhile, imports from Brazil barely exceeded 16,000 million dollars and, with an annual growth of 28.8% last year, represent almost 20% of Argentine purchases abroad. (YO)
Source: Eluniverso
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