Developments Take Place Between Argentina And Brazil, A Common Currency Is In The Making

There was a time when Argentina and Brazil had very strong economies. Both South American countries were considered very promising in the early 21st century.

However, the political disability in both countries did not do much good to the entire country’s economy. Things have not been well for both Argentina and Brazil as their economies have been facing declines.

It seems that both countries have found a solution to their deteriorating economies and declining currency prices.

The most interesting part is that they have realized that they will need to join hands and work together if they have to reemerge as strong economies.

Argentina and Brazil to Launch a Common Currency

The countries are aiming to work on coming up with an economy that is greater than the countries from around the world.

To achieve this, they have decided to work on the integration of a single economic module. The most interesting aspect of their efforts is to come up with a common currency.

It seems that both countries are on the same page when it comes to the implementation of the common currency.

Both countries want to work together to achieve this goal and want to make sure that their economies thrive on their new move.

The leaderships of both countries are in on the plan. This means that Alberto Fernandez from Argentina and Luiz Inacio Silva from Brazil are fully aware of the developments.

They are the ones who have penned the pact between both countries, to begin with.

Joint Statement by the Leaders

One of the local news reporting firms from Argentina has published the statement made by the joint leadership.

The statement confirms that both countries are determined to encourage their citizens to use their local currencies. They want them to prefer local currencies over international ones, including the dollar and the euro.

As per them, they are facing major issues pertaining to their exchanges and for this purpose, they want to modernize as well as simplify the rules.

This way, they can achieve higher goals and bring their economies to the very front, rivaling the major economies from around the world.

Launch of a Common Currency

Argentina and Brazil are also focused on launching their own common currency. They are currently in discussions to finalize the steps they need to take for the development and deployment of the common currency.

The purpose of the common currency is going to be extensive and they will be using it for all kinds of purposes.

The most common uses of the common currency would be to ensure that the commercial and financial flows stay put.

The usage of a common currency could help solve several issues that both countries are currently facing when making cross-transactions.

They will be able to reduce the costs of the operations tremendously and most importantly, they will be able to use the currency for external purposes.

Having a common currency would also reduce the external vulnerability of both countries.

Who came up with the Idea?

The idea for the development and launch of a new common currency was brought forward by Fernando Haddad.

He is currently the finance minister of Brazil and he had a contribution from his executive secretary (Gabriel Galipolo) in the idea as well.

It was during the campaign that Silva mentioned the formation of a new common currency. Turns out, Brazil has the opportunity to work closely with Argentina and come up with a new currency.

As Silva became the president of Brazil, he ensured that he strengthened ties with Argentina, which is their largest trading partner in the entire South American region.

Silva did this by announcing that his inaugural international trip will begin from Argentina. He continued with the tradition of the country visiting the country that is their top trading partner.

Once both countries are able to come up with their new common currency, it may pose a great threat to all major currencies.