Brazil’s President Lula da Silva and Argentina’s President Alberto Fernandez. /AFP
Brazilian President Lula da Silva and Argentinian President Alberto Fernández signed a currency commonly used to facilitate foreign trade and transactions between the two countries, with the aim of extending this alliance to other Latin American countries. opened the door to the distribution of We must avoid making the region’s trade policy dependent on the dollar.
This was announced by the two leaders at a press conference held in Buenos Aires as part of Lula’s first overseas visit and ahead of the meeting of the Community of Latin American and Caribbean States (Celac).
Specifically, Lula said that for the time being, the currency in use, known as “South”, is just a project that the economic teams of the governments of Argentina and Brazil hope to start “soon,” and that they would like to know more. I explained that I was waiting for… this proposal.
The President of Brazil said, “We are working to enable the respective ministries of the economy and their teams to make proposals for trade and transactions between the two countries through a common currency, based on many discussions and many meetings. I’m in.
In his pro-argument, Lula emphasized that in some countries it is difficult to obtain a dollar, so having a kind of currency for foreign trade would be a plus.
“If it were up to me, foreign trade would always be in other countries’ currencies. Everything new must be tested, and that the economy ministers and central bank governors have the intelligence, competence, and decency to We hope that it will dramatically improve the quality of business transactions and financial relationships,” he said.
The Argentinean president praised the Brazilian government’s “calling” to bet on this common currency, saying that while it was “unclear” how it would work, the two countries were “aware” of the “harmfulness”. is showing. The economy depends on foreign exchange.
“This is an interesting reflection. We need to delve into the links between Argentina and Brazil, as they are meant to promote all Latin American ties,” he added.
Second monetary union in the world.
According to the Financial Times on Sunday, the common currency project is meant to create the second largest monetary union in the world, but reaching this level is still a long process, and the deal is expected to continue. should be extended to other countries. Additionally, indefinitely, the new common currency will coexist with the Argentine Peso and Brazilian Real.
Already in 2008, there was a “cowardly” attempt to conduct commercial transactions between Argentina and Brazil in the currency of the other country, but this was an option and not an obligation, so it did not have the desired effect.
Brazil is now Argentina’s main trading partner. Bilateral trade between the two countries in 2022 amounted to $26.419 million (€24.017 million).
Source: Diario.Elmundo