Latam Community currency focuses on settlements between Mercosur and Brics countries-Economics
Latam Community currency focuses on settlements between Mercosur and Brics countries-Economics
The Brazilian President Luis Inacio Lula da Silva illustrated the scope and reach of the common currency that Brazil and Argentina wanted to spend in Latam. Lula da Silva made it clear that he believed that this currency would be used for handling border payments between the two countries and also countries from Brics and Mercosur.
Lula illustrates the intention of a common currency in Latam
luis Inacio Lula da Silva, President of Brazil, has clarified the facts about the intention that Argentina and Brazil have to create a common Latin American currency that is later to be extended to all of Latam. When he arrived in Buenos Aires to the Celac summit of the heads of state, Lula said that the discussion about the introduction of a currency for multilateral settlements between countries from different integration groups would revolve, including briks and Mercosur .
lula da silva :
Why not create a common currency with the Mercosur countries with the BRICS countries? I think that will happen. You can determine a trading currency set by the central bank.
lula also explained that he would prefer if international trade transactions were always handled in the national currencies to reduce the dependency on the US dollar.
Fernando Haddad, Minister of Economics of Brazil, offered a deeper insight into the goals of the two countries, explain
The trade is very bad and the problem is exactly the foreign currency, isn't it? So let's try to find a solution, something common that makes trade grow. The Argentine President Alberto Fernandez also referred to the hypothetical currency with the same words as Lula. Fernandez made it clear: The truth is that we do not know how a common currency between Argentina and Brazil works, nor do we know how a common currency will work in the region. However, what we know is how the economy acts with foreign currencies to act. The common explanations of Fernandez and Lula da Silva contradicted the expectations that some had in relation to retail and the widespread character of this currency, heated by the explanations that the Argentine Economic Minister Sergio Massa offered Financial times. Also, report from O’Globo explain that a common currency memorandum, which is to be signed by the two governments, contains a clause to protect the fiat currencies of every country, the Brazilian real and the Argentine peso, from being replaced by these currency. What do you think of the Latin American settlement currency that is discussed between Argentina and Brazil? Tell us in the comment area below. Photo credits : Shutterstock, Pixabay, Wiki Commons, Isaac Fontana/Shutterstock.com More details
