Brazil and Argentina are considering starting work on a common currency. In addition, Argentine Economy Minister Sergio Massa said that both countries plan to invite other countries in the region to participate in this economic integration project in the future.
Brazil and Argentina will lead the project to issue a common currency
The Brazilian and Argentine ministries will discuss the first steps toward issuing a common bilateral currency.18} Argentine Economy Minister Sergio Massa saidthat representatives from both countries will discuss the topic at the CELAC summit in Buenos Aires on January 24. The two countries will discuss this topic at the CELAC Summit in Buenos Aires on January 24.
Massa told the Financial Times that the discussion will center on initial considerations for the issuance of a coin called “sur,” which means south in Spanish. Massa stated.
A decision will be made to begin studying the parameters necessary for a common currency, from fiscal issues to the size of the economy and the role of the central bank.
Massa warned that this type of project would take time to materialize, citing as an example the euro, which took 35 years to be finally adopted by the European Union. He explained.
It is the first step in a long road that Latam has to walk.
Invitation to Latam
The currency will first be considered and designed bilaterally, but in the long run the project could be extended to include more countries in Latam. Masa explains, “Argentina and Brazil are inviting the rest of the region.”
Latam’s common currency project has gained momentum over the last year. Brazilian President Luiz Inacio Lula da Silva has previously mentioned the development as part of his presidential campaign. At a party rally in May, Lula da Silva announced his intention to participate in the creation of this common currency project, adding that its purpose is to reduce the Latam countries’ dependence on the US dollar.
In November, Venezuelan President Nicolas Maduro expressed support for the idea, saying it would be “extraordinary.” He also called for the inclusion of cryptocurrencies as part of a 21st century monetary system.
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