Brazil and Argentina are aiming for greater economic integration, adding the progression of a non-unusual currency, Brazilian President Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez said in a joint article they wrote.
“We intend to overcome barriers to our trade, simplify and modernize regulations and inspire the use of local currencies,” says the text published in the Argentine Profile.
“We also want to advance discussions on a non-unusual South American currency that can be used for monetary and industrial flows, thereby reducing operating prices and our external vulnerability,” the report says.
The concept of a non-unusual currency was originally raised in an article written last year by Fernando Haddad and Gabriel Galipolo, now Brazil’s finance minister and executive secretary, respectively, and discussed through Lula’s campaign.
Lula selected Argentina for his first foreigner since taking office, in keeping with the culture of visiting Brazil’s largest business spouse in the region for the first time. This follows 4 years of strained relations under the government of right-wing former Brazilian President Jair Bolsonaro.
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Lula’s arrival in neighboring Argentina also marks Brazil’s return to the Community of Latin American and Caribbean States (CELAC), which Brazil left in 2019 under the orders of Bolsonaro, who refused to participate in the regional organization due to the presence of Cuba and Venezuela. . .
The two presidents press the need for a smart union between Argentina and Brazil for regional integration, according to the report.
The leaders also focused on strengthening the Mercosur industrial bloc, which includes Argentina, Brazil, Paraguay and Uruguay, and which Brazilian Finance Minister Haddad recently lamented as a desert in recent years.
“Together with our partners, we want Mercosur to be a platform for our effective integration into the world, through the joint negotiation of balanced industrial agreements that meet our strategic objectives of progression,” the two presidents said.
Earlier in the day, the Financial Times reported that neighboring countries will announce this week that they are beginning preparatory paintings on a non-unusual coin.
The plan, to be discussed at a summit in Buenos Aires this week, will focus on how a new currency that Brazil suggests be called “south” could breathe life into regional industry and decrease dependence on the U. S. dollar, FT quoted officials as saying.
Politicians from both countries already had the concept in 2019, but were rejected by Brazil’s central bank at the time.
Starting first as a bilateral project, the initiative will then be expanded to invite other Latin American countries, according to the report, which added that an official announcement of Lula’s stopover in Argentina was expected to begin Sunday night.
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