Brazil and Argentina to discuss common currency

BUENOS AIRES, Jan 22 (Reuters) – 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 statement. a joint report they wrote.

“We intend to overcome the obstacles of our reform, simplify and improve the law and support the use of public funds,” says the text published on the Argentine Perfil website.

“We also decided to promote negotiations on a common South American currency that can be used for both financial and commercial purposes, reducing the costs and our weaknesses,” the article said.

The idea of ​​a common currency was raised in a newspaper written by Fernando Haddad last year and Gabriel Galipolo, who is now Brazil’s finance minister and secretary general, respectively, was mentioned by Lula during the campaign.

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Lula chose Argentina for his first international trip since taking office, following the tradition of first visiting Brazil’s biggest trade partners in the region. That follows four years of strained relations during the government of Brazil’s former right-wing president Jair Bolsonaro.

Lula’s trip to neighboring Argentina also marks Brazil’s return to the Community of Latin American and Caribbean States (CELAC), which Brazil left in 2019 under Bolsonaro’s rule, who refused to join the region due to the presence of Cuba and Venezuela. .

The two leaders stressed the need for good relations between Argentina and Brazil to strengthen regional ties, according to the article.

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The leaders emphasized strengthening the Mercosur trade sector, which includes Argentina, Brazil, Paraguay and Uruguay, and which Brazilian Finance Minister Haddad recently lamented has been abandoned in recent years.

“With our partners, we want Mercosur to be a platform for effective participation in the world, through the joint negotiation of a fair trade agreement that accepts our development goals,” said the two leaders. .

Earlier in the day, the Financial Times reported that neighboring countries will announce this week that they are starting preparatory work on a common currency.

The plan, which will be discussed at a meeting in Buenos Aires this week, will focus on how Brazil’s proposed new currency called “sur” (south) could boost regional trade and reduce dependence on the dollar. US, FT reported that officials. .

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Politicians from both countries have already discussed the idea in 2019, but they met with pushback from Brazil’s central bank at the time.

Initially launched as a second project, the plan will be extended to invite other countries in Latin America, the report said, adding that the official announcement is expected during Lula’s visit to Argentina which begins on Sunday night.

Statement by Lisandra Paraguassu; Additional Information Jyoti Narayan in Bengaluru; Editing by Tomasz Janowski, Diane Craft and Chris Reese

Our principles: Thomson Reuters Trust Principles.


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