Brazilian President Lula de Silva and Argentine leader Alberto Fernández have announced plans for greater economic integration between the two countries, including the development of a common currency. In a joint article, the leaders stated their intention to overcome barriers to trade, simplify them, and modernize rules in order to encourage the use of local currencies. The countries have also decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, reducing costs, operations, and external vulnerability.
The idea of a common currency was first raised in an article written last year by the Brazilian Finance Minister and his executive secretary. Lula chose Argentina for his inaugural international trip since taking office, keeping with the tradition of first visiting Brazil’s closest trading partner in the region. The trip also marks a turning point for Brazil’s relationship with the Community of Latin American and Caribbean States, which Brazil left in 2019 under the order of former President Jair Bolsonaro, who refused to participate in the regional group due to the presence of Cuba and Venezuela. Both presidents emphasized the need for strong ties between Argentina and Brazil to strengthen regional integration.