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Brazil and Argentina Discuss Common South American Currency
Posted
January 26, 2023
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3,406
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January 26, 2023
3,406
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1:00Now PlayingBrazil and Argentina’s presidents have launched discussions on a common currency, but their plans are nothing like the euro, which replaced national currencies like the lira, franc and deutsche mark entirely.
What’s on the table is a common unit for commercial transactions, part of a larger strategy by recently elected Luiz Inacio Lula da Silva to boost trade and restore Brazil’s traditional influence in the region, which sagged under his predecessor, Jair Bolsonaro.
Yet Lula’s plans come at a difficult time, with the region’s existing Mercosur trade block put to the test by one of its founding partners, debates over the growing influence of China in South America and political tensions spreading around the region.
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