Very interested in how they plan to factor this in. My understanding is that inflation is such an issue in Argentina that a lot of people buy dollars whenever they can as investment, since the...
The attractions of a new common currency are most obvious for Argentina, where annual inflation is approaching 100 per cent as the central bank prints money to fund spending.
Very interested in how they plan to factor this in. My understanding is that inflation is such an issue in Argentina that a lot of people buy dollars whenever they can as investment, since the local currency is constantly depreciating their money is then more valuable just by fact of being stable.
If the issues are overcome and they actually get more countries to be a part of it, would be interesting to see the impact of becoming more independent of the dollar and the US in general.
As you said, Argentina would have a more stable currency. Brazil would have little to gain in the short term, but that would bring political dividends from expanding our influence in the region...
As you said, Argentina would have a more stable currency. Brazil would have little to gain in the short term, but that would bring political dividends from expanding our influence in the region and strengthening our leadership in South America.
A unified South American currency is a long-held dream since the creation of Mercosur, in 1991.
Indeed, the common currency that Argentina and Brazil have in mind will not be like the euro that circulates in the European Union, but a currency for commercial and financial transactions that would not replace the Brazilian real or the Argentine peso. It is a project still in its infancy, Brazil’s President Lula da Silva acknowledged on Monday: “We are waiting for our (economic) teams to make a proposal.”
Very interested in how they plan to factor this in. My understanding is that inflation is such an issue in Argentina that a lot of people buy dollars whenever they can as investment, since the local currency is constantly depreciating their money is then more valuable just by fact of being stable.
If the issues are overcome and they actually get more countries to be a part of it, would be interesting to see the impact of becoming more independent of the dollar and the US in general.
As you said, Argentina would have a more stable currency. Brazil would have little to gain in the short term, but that would bring political dividends from expanding our influence in the region and strengthening our leadership in South America.
A unified South American currency is a long-held dream since the creation of Mercosur, in 1991.
El País published a better article with more info today. From the article: