Brazil and Argentina will begin preparations for a common currency

Brazil Y Argentina will announce this week that they are beginning preparatory work on a common currency, the Financial Times reported on Sunday.

The plan, which will be discussed at a summit in Buenos Aires this week, will focus on how a new currency that Brazil suggests calling “southIt could boost regional trade and reduce reliance on the US dollar, the FT reported, citing officials.

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“There will be . . . a decision to start looking at the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks”, said the Minister of Economy of Argentina, Sergio Massato the Financial Times.

Politicians from both countries already discussed the idea in 2019, but were met with pushback from Brazil’s central bank at the time.

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The initiative, which initially began as a bilateral project, would later be extended to invite other Latin American nations, according to the report, adding that an official announcement was expected during the visit of the Brazilian president, Luiz Inacio Lula da Silvato Argentina, which begins on Sunday night.

Source: Elcomercio

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