Argentina and Brazil will create a single currency
2023.01.22 08:03
Argentina and Brazil will create a single currency
By Kristina Sobol
Budrigannews.com – The Financial Times reported on Sunday that Brazil and Argentina will announce this week that they are beginning preparatory work on a common currency.
According to officials cited by FT, the plan will be discussed this week at a summit in Buenos Aires. It will focus on how a new currency that Brazil proposes calling the “sur” (south) could increase regional trade and reduce reliance on the US dollar.
“It will happen. . . a decision to begin investigating the conditions for a common currency, which include everything from fiscal issues to the size of the economy and the role of central banks, Argentina’s economy minister Sergio Massa told the Financial Times.
In 2019, politicians from both nations discussed the idea, but Brazil’s central bank at the time rebuffed them.
According to the report, the initiative would initially begin as a bilateral endeavor before expanding to include additional nations from Latin America. Additionally, an official announcement was anticipated during Brazilian President Luiz Inacio Lula da Silva’s visit to Argentina, which begins on Sunday night.
