Brazil and Argentina study the creation of a single currency for commercial exchanges

single currency

Subject was discussed by presidents Lula and Alberto Fernández

Buenos Aires (Argentina) – The economic teams from Brazil and Argentina will work on a proposal to create a common currency that can be used in commercial and financial flows. The aim would be to reduce operating costs and dependence on foreign currencies.

In a statement today (23), in Buenos Aires, Argentina, Lula said that this will be done “with a lot of debate and many meetings”.

“That’s what will happen,” he said.

“If it were up to me, we would always have foreign trade in the currencies of other countries, so we wouldn’t have to depend on the dollar”,

argued the president.

According to Lula, many countries find it difficult to acquire dollars, and this prevents agreements from taking place.

“God willing that our ministers and presidents of central banks have the intelligence, competence and common sense necessary for us to take a leap in quality in our commercial and financial relations”,

completed the president.

Lula met with the president of Argentina, Alberto Fernández, at the Casa Rosada, seat of the country’s government. According to the Argentine representative, he still does not know how this currency would work, but “courage to change” is needed.

“But yes, we know what happens to national economies having to run on foreign currencies and we know how harmful that is,”

said Fernandez.

This is Lula’s first international trip after taking office. The visit, at the invitation of President Fernández, marks the resumption of relations between the two countries, after a period of distance between the governments.

After the bilateral meeting, the presidents signed a comprehensive joint declaration in different areas. Several cooperation instruments were also signed between the two countries in the areas of defense, health, science and technology, economic and financial integration and Antarctic cooperation.

pipeline

Brazil and Argentina have a purpose in terms of electrical and gas integration. The neighboring country has supported the proposal to build a gas pipeline between the shale gas reserves (shale) from the Vaca Muerta reserve to Brazil.

Questioned about the possibility of the National Bank for Economic and Social Development (BNDES) financing works for this project, Lula said that it is the role of “bigger countries” to help those who have less conditions at certain historical moments.

“From time to time in Brazil we are criticized for pure ignorance, people who think that there cannot be engineering funding for other countries. I think that not only can, but it is necessary for Brazil to help all its partners. And that is what we are going to do within the economic possibilities of our country. The BNDES is very big”,

said.

Lula, however, is confident that Brazilian businessmen are interested in the gas pipeline and in making investments in other areas in the neighboring country.

“If there is interest from businessmen, from the government and we have a development bank for that, I want to say that we are going to create the conditions to finance what we have to do to help the Argentine gas pipeline”,

completed Lula.

Also this Monday, Lula will participate in a meeting with businessmen from both countries and, at night, the two presidents will attend a musical concert with Argentine and Brazilian artists, at the Centro Cultural Kirchner.

Tomorrow (24), Lula will participate in the summit meeting of the Community of Latin American and Caribbean States (Celac). With the change of government, Brazil is rejoining the group, after three years away from the mechanism.

*With information from Agência Brasil

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