Argentina: Lula returns to defend common currency – 06/26/2023 – Market

President Luiz Inácio Lula da Silva (PT) once again defended, this Monday (26), the adoption of a common currency, as well as the release of credit to encourage Brazilian exports to Argentina.

The statement was given after a meeting with the Argentine representative, Alberto Fernández, at the Itamaraty. This is his fourth visit since Lula was elected. This time, it takes place to celebrate the 200th anniversary of diplomatic relations between the two countries.

“We need to advance in this direction with new and creative solutions that allow for greater financial integration and facilitate our exchanges. Among the options is the adoption of a specific reference currency for regional trade that will not eliminate the respective national currencies,” he told journalists.

“Today we adopted an ambitious plan of action to relaunch the strategic alliance. There are almost 100 actions that make our joint development project concrete. “, said Lula.

“We are working on the creation of a comprehensive financing line for Brazilian exports to Argentina. It makes no sense that Brazil loses space in the Argentine market to other countries because they offer credit and we do not. Everyone has to gain, companies, workers Brazilians and Argentine consumers”.

After the statements, Fernández was awarded the Grand Collar of the National Order of the Southern Cross. The Argentine First Lady, Fabiola Yáñez, received the Grand Cross of the Order of Rio Branco.

Argentina is betting on the construction of the gas pipeline to achieve independence in this source of energy by 2025 and alleviate its harsh economic crisis, as the government will be able to save on imports and reduce the lack of dollars that drives the very high inflation.

The first section of the gas pipeline began operating last Tuesday (20).

Fernández and Lula exchanged compliments this Monday, as usual. The two highlighted the proximity of the two countries and called each other friends.

“Nothing is easy because you have a friend in trouble. But when a friend is in trouble, what he does, the friend in trouble, is ask his friends for help. And friends are always there,” said Fernández.

The neighboring country, which will hold presidential elections in less than four months, is facing its third major economic crisis in 40 years of democracy, with inflation in the triple digits since February.

Even so, it is Brazil’s third largest trading partner, behind China and the United States.

The Argentine chief executive was received at the Planalto with a ceremony, complete with an orchestra, followed by a meeting and then lunch at the Itamaraty.

In addition to Lula, Fernández will also meet with the presidents of Congress and of the STF (Federal Supreme Court), Senator Rodrigo Pacheco (PSD-MG) and Minister Rosa Weber, respectively.

Next week, on the 3rd and 4th of July, the two heads of state will meet for the sixth time, at the Mercosur summit meeting, in Puerto Iguazú, Argentina.

In addition to coming to the inauguration, the Argentine was here on May 2, to discuss the economic crisis plaguing the country with the PT candidate. He left Brasilia with no money, as Lula said, but with the promise that the Brazilian government would make an effort to create a kind of guarantee fund to help Argentina in the Brics bank, the NDB (New Development Bank).

Then, at the end of May, the Argentine president was in Brazil once more, but for the meeting of South American countries in Brasília.

Furthermore, Buenos Aires was Lula’s first international trip in January.