Argentina and Brazil are seeking greater economic integration, including the development of a common currency. This is the most ambitious objective of the strategic alliance that the presidents of both countries will relaunch during Luiz Inácio Lula da Silva's visit to Buenos Aires this week, the first abroad since he took power on January 1. The Brazilian president will meet this Monday (23.01.2023) with Alberto Fernández and the following day both will participate in the CELAC summit (the Community of Latin American and Caribbean States).
Fernández and Lula announced, in a joint text in the Argentine Presidency website, which have decided to “move forward with 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 the document, they urge to “simplify and modernize the rules and encourage the use of local currencies” as a way to overcome barriers in commercial exchanges.
Likewise, the Argentine Minister of Economy, Sergio Massa, confirmed the conversations but warned in statements to the Financial Times newspaper that this is the “first step on a long road.”
According to the newspaper, the announcement of the joint work to create a common currency between Brazil and Argentina will be made this week. Once the project is advanced, the countries will invite other Latin American nations to join. “The movement could eventually close the second largest monetary bloc in the world,” the American newspaper highlights.
The possibility of uniting the Argentine and Brazilian economies had already been raised in recent years, at different times. However, the talks failed after the Central Bank of the neighboring country opposed the idea. Now, the joint project is gaining speed and an official announcement is expected during Lula's visit to the country that began on Sunday night.
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