Luiz Inacio Lula da Silva, president of Brazil, right, meets Alberto Fernandez, president of Argentina, after being sworn in during his inauguration in Brasilia, Brazil on January 1, 2023.
Maira Erlich | Bloomberg | beautiful pictures
Brazilian President Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez said Brazil and Argentina work towards deeper economic integration, including the development of a common currency.
“We intend to overcome barriers to our exchanges, simplify and modernize the rules and encourage the use of local currency,” the text was posted on Perfil’s website. Argentina said.
“We also decided to promote discussions of a common South American currency that can be used for both financial and trade flows, reducing our operating costs and external vulnerabilities,” he said. the article said.
The idea of a common currency was originally raised in an article last year by Fernando Haddad and Gabriel Galipolo, now Brazil’s finance minister and executive secretary, and was mentioned by Lula during the campaign. election translation.
Lula chose Argentina for her first international trip since taking office, traditionally visiting Brazil’s largest trading partner in the region for the first time. That comes after four years of strained relations under the government of former right-wing Brazilian 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 at the behest of Bolsonaro, who declined to join. regional grouping due to the presence of Cuba and Venezuela.
Both presidents emphasized the need for good relations between Argentina and Brazil to strengthen regional integration, according to the article.
The leaders also highlighted the consolidation of the Mercosur trade bloc, which includes Argentina, Brazil, Paraguay and Uruguay, and which Brazilian Finance Minister Haddad recently complained about. abandoned in recent years.
“Together with our partners, we want Mercosur to form a platform for our effective integration into the world, through joint negotiation of balanced trade agreements that meet development goals.” our strategy,” both presidents said.
One day earlier, Financial Times report Neighboring countries will announce this week that they are starting work on a common currency.
The plan, to be discussed at a summit in Buenos Aires this week, will focus on how a new currency Brazil suggests calling “sur” (male) could boost trade. region and reduce dependence on the US dollar, the FT reported citing officials.
Politicians of the two countries discussed the idea has been around since 2019, but was met with resistance from 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. Waiting for Lula’s visit to Argentina begins Sunday night.
