Brazil and Argentina begin working on the creation of a common Latin American currency - Economics
Brazil and Argentina begin working on the creation of a common Latin American currency - Economics
Brazil and Argentina want to start with the edition of a common currency. Sergio Massa, Minister of Economic Affairs of Argentina, also said that the two countries will invite other nations in the region to join this economic integration project in the future.
Brazil and Argentina lead joint currency output project
The ministries of Brazil and Argentina will discuss the first steps to publish a common bilateral currency. According to statements made by the Argentine Economic Minister Sergio Massa, representatives of both countries will be on the Celac summit Exchange in Buenos Aires on January 24th.
Massa told the Financial Times that the discussion about initial considerations to publish the coin that means “sur”, Spanish for south. Massa explained:
There will be ... a decision to begin with the examination of the parameters that are necessary for a common currency, which includes everything, from tax issues to the size of the economy and the role of central banks.
Massa warned that such a project would take time to bear fruits and named the euro that was under development for 35 years before it was finally introduced in the European Union. He explained:
I don't want to arouse false expectations ... it is the first step on a long way that Lata has to cover.
An invitation for latam
While the currency would initially be examined and designed as bilateral undertaking, the project could be extended to further nations in Latam in the long term. "They are Argentina and Brazil who invite the rest of the region," said Massa.
The project of a common currency for Latam won the trip last year. Brazil's President Luis Inacio Lula da Silva had already pointed out this development as part of his presidential campaign. At a party rally in May Lula da Silva explains his intention to participate in the creation of this common currency project, and added that the goal was to reduce the dependence of the Latin American countries on the US dollar.
In November, Venezuelan President Nicolas Maduro supported the idea of that it would be" extraordinary ". He also called for the inclusion of cryptocurrencies as part of the money system of the 21st century.
What do you think of the introduction of a common currency in Latam? Tell us in the comment area below.
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