Brazil and Argentina study creating a single currency for trade
The economic teams of Brazil and Argentina will work on a proposal to create a common currency that can be used in commercial and financial flows. The objective would be to reduce operational costs and the dependence on foreign currencies.
In a statement today (23) in Buenos Aires, Argentina, Lula said this will be done "with much debate and many meetings." "That's what will happen," he said. "If it depended on me, we would always have foreign trade in the currencies of other countries, so we wouldn't need to depend on the dollar," argued the president.
According to Lula, many countries have difficulty acquiring dollars, and this prevents agreements from happening. "God grant that our ministers and central bank presidents have the intelligence, competence, and wisdom necessary for us to take a quality leap in our commercial and financial relations," added the president.
Lula met with the president of Argentina, Alberto Fernández, at the Casa Rosada, seat of government of the country. According to the Argentine mandatary, he still does not know how this currency would work, but it takes "courage to change." "But, yes, we know what happens to national economies having the need to function with foreign currencies and we know how harmful that is," Fernández said.
This is Lula's first international trip after taking office. The visit, at the invitation of President Fernández, marks the resumption of the relationship between the two countries, after a period of estrangement 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-financial integration, and Antarctic cooperation.
Gas pipeline
There is a purpose of Brazil and Argentina in the electric and gas integration. The neighboring country has supported the proposal of building a gas pipeline from the shale gas reserves in the Vaca Muerta reserve to Brazil.
When asked about the possibility of the National Bank for Economic and Social Development (BNDES) financing this project, Lula said that it is the role of "larger countries" to help those who are less able at certain historical moments. "Once in a while in Brazil we are criticized out of sheer ignorance, people who think that there can't be engineering financing for other countries. I think that not only can it be, but it is necessary for Brazil to help all its partners. And this is what we will do within the economic possibilities of our country. BNDES is very big," he 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 this, I want to say that we will create the conditions to make the financing that we have to do to help the Argentine gas pipeline," added Lula.
Also this Monday, Lula participates in a meeting with businessmen from both countries and, in the evening, the two presidents attend a musical concert with Argentine and Brazilian artists at the Kirchner Cultural Center.
Tomorrow (24), Lula participates 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.
