Discussion on common currency should gain strength on Lula’s trip to Buenos Aires, say allies – 01/22/2023 – Panel

The discussion on a common currency for the Mercosur countries should gain strength with the trip of President Luiz Inácio Lula da Silva to Buenos Aires (Argentina), where he participates in the summit of Celac (Community of Latin American and Caribbean States).

Lula travels to the Argentine capital this Sunday night (22). The expectation of members of the government is that the conversations about a common currency, which are still in their infancy, will gain strength in meetings that the president will hold throughout the event, including one with his Argentine colleague, Alberto Fernández. Minister Fernando Haddad (Finance) is part of the delegation.

Late Saturday night (21), Lula and Fernández signed a joint article in the Argentine newspaper Perfil in which they defended the relaunch of the alliance between Brazil and Argentina.

In an excerpt, both defend discussions on a common currency for the bloc. “We intend to overcome the barriers in our exchanges [comerciais]simplify and modernize the rules and encourage the use of local currencies”, they write.

“We also decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, reducing operating costs and our external vulnerability.”

In April last year, Haddad and his current Treasury Executive Secretary, Gabriel Galípolo, wrote an article in Sheet arguing that the creation of the South American currency can accelerate regional integration. “The new currency could be used both for commercial and financial flows between countries in the region”, indicates the article.

In January of this year, when asked about the possible creation of a single currency for Mercosur, Haddad told a journalist to “get informed first”. The declaration took place two days after the ambassador of Argentina, Daniel Scioli, said that he had spoken with the minister about the creation of a common currency (not a single one) for the bloc.

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