Brazil and Argentina: New currency in sight?

📌Over the last few weeks, the Argentinian and Brazilian governments have been studying the idea of creating a joint currency for both countries. The two largest economies in South America are interested in becoming more competitive in international markets, and in reducing their dependence on the dollar.

📌In 2019, both countries were analyzing the implementation of a joint currency, but the former Brazilian president (Bolsonaro) did not consider this union as beneficial for Brazil. However, after the arrival of Lula (thanks to his political-economic harmony with the Argentinian government of Alberto Fernandez), it seems that the idea is regaining shape.

📌The idea is to create a community currency between these two countries at first, and to later expand it throughout Latin America, and thus reinforce its importance worldwide.

📌Now, it seems a complex idea to carry out, as there is a lot of inequality between Latin American countries. Moreover, if we look at Argentina and Brazil, the former stands out for living in constant inflation (and currency depreciation) over the last few years, and the latter, after the last elections held several weeks ago, is immersed in a deep political conflict.