Brazil and Argentina set to launch Common Currency Preparations

Brazil and Argentina set to launch Common Currency Preparations. The leaders of Brazil and Argentina, President Luiz Inacio Lula da Silva and President Alberto Fernandez, announced that they want to improve economic ties between their countries, which includes creating a shared currency.

 

Brazilian President Luiz Inacio Lula da Silva and Argentine President Alberto Fernandez wrote an article together saying that they want to make their countries’ economies work better together, including creating a shared currency. They also plan to discuss creating a new currency for South America that can be used for financial and commercial transactions, reducing costs and making the countries less dependent on other currencies. They plan to talk about this at a meeting in Buenos Aires. Brazil’s president suggested calling it the “sur” (short for South) and said it could help increase trade between the countries in the region and reduce the need to use the US dollar.

The Common Currency Program

The idea of a common currency program between Brazil and Argentina was first brought up in an article written last year by Fernando Haddad and Gabriel Galipolo, who is now Brazil’s finance minister and executive secretary, respectively. This idea was also mentioned during Lula’s campaign for the presidency. 

Lula’s Push For Greater Regional Integration

Lula, the current President of Brazil, is pushing for greater regional integration and has chosen Argentina as his first international trip since taking office, which follows the tradition of first visiting Brazil’s largest trading partner in the region. This move also comes after four years of strained relations between the two countries during the tenure of former Brazilian right-wing President Jair Bolsonaro.

Why President Lula Argentina visit is significant?

President Lula of Brazil’s visit to Argentina is also significant as it marks Brazil’s return to the Community of Latin American and Caribbean States (CELAC). Brazil left this regional group in 2019 under the previous president, Jair Bolsonaro, who did not want to participate because of the presence of Cuba and Venezuela. 

What the two president said in their joint article?

The two presidents said in their joint article that it is important for Argentina and Brazil to have a good relationship to strengthen regional integration. They also talked about the importance of making Mercosur, a trade organization that includes Argentina, Brazil, Paraguay and Uruguay, stronger. The Brazilian Finance Minister recently said Mercosur had not been given enough attention recently.

Recommended reading: Deadly Lunar New Year Shooting: California Suspect Found Dead

Rajdeep Banerjee: