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Brazil and Argentina plan to advance talks about a common currency for financial and commercial transactions in an effort to improve economic integration, leaders of the two nations said on Jan. 21.
Brazilian President Luiz Inacio Lula da Silva, who was sworn in on Jan. 1, and Argentine leader Alberto Fernandez shared details about the talks regarding a shared currency in a joint article published on the Argentine website Perfil, CNBC reported.
“There will be …. a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks,” Massa said.
Massa also noted that Brazil and Argentina would invite other nations in Latin America to join in the common currency, but stressed that he didn’t want to create any “false expectations” and that the talks between the countries are “the first step on a long road which Latin America must travel.”
If successful, the common currency could potentially eventually create the world’s second-largest currency bloc, after the European Union. The euro is the official currency of 20 of the 27 member states of the EU. However, it took over 35 years to create the euro.
Lula is currently in Argentina where he is set to attend a summit of the Community of Latin American and Caribbean States, which Brazil left in 2019 under former leader Jair Bolsonaro.
originally posted by: Maxmars
Lula is currently in Argentina where he is set to attend a summit of the Community of Latin American and Caribbean States, which Brazil left in 2019 under former leader Jair Bolsonaro.
Another brick in the wall.
"In politics there are no coincidences..." is that how it goes?
originally posted by: Maxmars
a reply to: M5xaz
Isn't it strange that we (you and I) recognize the power of fluctuating economic trends, but we often fail to recognize that it's the bank that control monetary policy (not just here, but everywhere.) We might wonder if they are 'orchestrating" the rises and falls of the economies by fiat alone? I know it's not that simple. Yet it is.