{"id":16871,"date":"2023-01-25T13:26:34","date_gmt":"2023-01-25T13:26:34","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/latam-common-currency-to-focus-on-settlements-among-mercosur-and-brics-countries-economics-bitcoin-news\/"},"modified":"2023-01-25T13:26:34","modified_gmt":"2023-01-25T13:26:34","slug":"latam-common-currency-to-focus-on-settlements-among-mercosur-and-brics-countries-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/latam-common-currency-to-focus-on-settlements-among-mercosur-and-brics-countries-economics-bitcoin-news\/","title":{"rendered":"Latam Common Currency to Focus on Settlements Among Mercosur and BRICS Countries \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

President of Brazil Luis Inacio Lula Da Silva clarified the scope and reach of the common currency that Brazil and Argentina are studying to issue in Latam. Lula Da Silva clarified that he believed this currency would be used to settle cross-border payments between the two countries and also countries from BRICS and Mercosur.<\/strong><\/p>\n

Lula Clarifies Latam Common Currency Intention<\/h2>\n

Luis Inacio Lula Da Silva, president of Brazil, has clarified the facts surrounding the intention that Argentina and Brazil have of creating a Latam common currency, that would be later extended to all of Latam. Upon his arrival in Buenos Aires for the CELAC summit of chiefs of state, Lula explained that the discussion would circle around the launch of a currency for multilateral settlements amongst countries of different integration groups, including BRICS<\/a> and Mercosur<\/a>.<\/p>\n

Lula Da Silva stated<\/a>:<\/p>\n

\n

Why not create a common currency with the Mercosur countries, with the BRICS countries? I think that is what is going to happen. You can establish a type of currency for trade that the central bank sets.<\/p>\n<\/blockquote>\n

Lula also stated that he would prefer international trading transactions to be always settled in currencies native to their countries to reduce dependence on the U.S. dollar.<\/p>\n

Fernando Haddad, minister of economy of Brazil, offered more insight into the objectives of the two countries, explaining<\/a>:<\/p>\n

\n

Trade is very bad and the problem is precisely the foreign currency, right? So we are trying to find a solution, something in common that can grow the trade.<\/p>\n<\/blockquote>\n

More Details<\/h2>\n

President of Argentina Alberto Fernandez also referred to the hypothetical currency in the same terms that Lula did. Fernandez clarified:<\/p>\n

\n

The truth is that we don\u2019t know how a common currency between Argentina and Brazil works, nor do we know how a common currency will work in the region. But what we do know is how the economy works with foreign currencies to trade.<\/p>\n<\/blockquote>\n

The joint statements of Fernandez and Lula Da Silva went against the expectations that some had on the retail and widespread character that this currency would have, fueled by the statements that the minister of economy of Argentina, Sergio Massa, offered<\/a> Financial Times.<\/p>\n

Also, reports<\/a> from O\u2019Globo explain that a common currency memorandum to be signed by the two governments includes a clause to protect the fiat currencies of each country, the Brazilian real and the Argentine peso, from being substituted by this settlement-focused currency.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
alberto fernandez<\/a>, Argentina<\/a>, Brazil<\/a>, brics<\/a>, common currency<\/a>, dependence<\/a>, Fernando Haddad<\/a>, latam<\/a>, luis inacio lula da silva<\/a>, mercosur<\/a>, Sergio Massa<\/a>, Settlements<\/a>, U.S. dollar<\/a><\/div>\n<\/div>\n

What do you think about the Latam settlement currency being discussed between Argentina and Brazil? Tell us in the comments section below.<\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Isaac Fontana \/ Shutterstock.com<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n