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Brazil, Argentina to encourage commerce, says Haddad; performs down frequent foreign money By Reuters

© Reuters. FILE PHOTO: Brazil’s new Financial system Minister Fernando Haddad is seen on the Planalto Palace in Brasilia, Brazil January 5, 2023. REUTERS/Adriano Machado/File Photograph

By Lisandra Paraguassu

BUENOS AIRES (Reuters) – Brazilian Finance Minister Fernando Haddad performed down the thought of a single shared foreign money between Argentina and Brazil late on Sunday, saying the international locations had been taking a look at methods to stimulate bilateral commerce however not extinguish their very own currencies.

His remarks got here after Brazilian President Luiz Inacio Lula da Silva and Argentine chief Alberto Fernandez revealed a joint article saying their goal for better financial integration included research of a standard South American foreign money.

Haddad, who floated such a risk in an article final 12 months, stated eradicating commerce boundaries between the 2 largest economies in South America might contain utilizing a single foreign money for commerce, given a scarcity of U.S. {dollars} in Argentina. However that doesn’t spell the top of the Brazilian actual, he stated.

“Commerce is absolutely unhealthy and the issue is exactly the overseas foreign money, proper? So we’re looking for an answer, one thing in frequent that would make commerce develop,” Haddad instructed reporters as he arrived in Buenos Aires forward of Lula’s first worldwide journey since his Jan. 1 inauguration.

He stated Argentina’s commerce with Brazil had suffered because of a scarcity of {dollars} within the southern neighbor, the place an financial disaster has left the federal government battling to replenish overseas foreign money reserves, with an inflation price of practically 100% final 12 months.

Haddad famous Argentina was an necessary purchaser of Brazilian industrial items and that “a number of potentialities” had been being floated to bypass its foreign money issues, although no resolution had been made.

Requested if he might present additional particulars on the foreign money subject, Haddad confirmed he would clear the matter up in coming days, including sarcastically: “particularly as a result of some persons are saying the actual will finish.”

Earlier on Sunday, Lula and Fernandez stated in an article revealed on the Argentine web site Perfil they’d “advance discussions on a standard South American foreign money that can be utilized for each monetary and industrial flows”.

The Monetary Instances had beforehand reported, citing Argentina’s Financial system Minister Sergio Massa, that the neighboring nations would announce this week they had been beginning preparatory work on a standard foreign money.



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