Argentine Foreign Minister Says a Latin American Common Currency Would Relieve Argentina’s Stress on the Dollar Issue – Economics Bitcoin News

Argentine Foreign Minister Santiago Cafiero pointed out the advantages that the issuance of the single Latin American currency would provide to Argentina. Cafiero explained that having such a currency would relieve the pressure the country is currently facing regarding the state of its foreign reserves and the depreciation of its fiat currency.

Argentine Foreign Minister talks about the single currency of Latin America

Santiago Cafiero, Minister of Foreign Affairs of Argentina, spoke about the benefits that a common currency of the LATAM countries would bring to the region and his country. Cafiero explained that while many proposals were made to the four-hour meeting between Brazilian President Luis Inacio “Lula” da Silva and his Argentine counterpart Alberto Fernandez, the issuance of a single Latin American currency was not touched upon.

However, Cafiero showed his support for the creation of such a currency, Mentionsed:

It would be very good to have a common currency because it would avoid all the pressure that Argentina has with regard to the dollar issue.

Argentina is struggling to reduce its foreign dollar reserves, which have to be used to pay for imports due to the current structure of international trade. This prompted the Argentine government to attempt to substitute the use of the dollar for the Chinese yuan in its bilateral settlements with China, to preserve its dwindling reserves.

Origins of the region’s single currency proposal

The proposal for a common currency for the region was part of the presidential campaign of current Brazilian President Lula, who stated that Brazil would use this currency to connect again with other countries in Latin America, to undermine the ubiquitous use of the dollar.

Initial reports indicated that this project is similar to the euro, as an alternative to paper currencies for many countries in the region, and Argentina and Brazil were the first to advocate the idea.

The proposal was later discussed by the governments of Argentina and Brazil at the commitment of the Group of Latin American and Caribbean States in Buenos Aires in January, where the two governments signed a document to start work on the creation of this common currency, explaining that its use would be limited to settlements between the countries of the Southern Common Market and the BRICS bloc, which is also considering issuing its own common currency.

What do you think of the advantages that a common currency in Latin America could give Argentina? Tell us in the comments section below.

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