MercoPress. South Atlantic News Agency
Argentine Vice President elect urges Latam countries to use local currencies
Argentine Economy Minister and Vice-President elect Amado Boudou urged Latin American countries to increase the use of local currencies in regional trade instead of depending on other currency such as the dollar. Read full article
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Disclaimer & comment rulesI would definitely use some of the local currency to give him a decent haircut. : )
Nov 16th, 2011 - 11:53 am - Link - Report abuse 0Nobody wants Arg Pesos and soon they will lose the ability to use U$ for their trade. What a messed up place...
Nov 16th, 2011 - 01:07 pm - Link - Report abuse 0Is it just me, or was there a story about how the Uruguayans were being stopped from returning (and presumably exchanging) Pesos also on the front page?
Nov 16th, 2011 - 01:40 pm - Link - Report abuse 0I know nothing about how this could pan out, but it seems to me there would need to be a set of exchange rates that had international validity and were based on real worth of the currencies of each Lat Am country.
Nov 16th, 2011 - 07:26 pm - Link - Report abuse 0What would be the benchmark for determining the exchange rates?
Typically this would be the US Dollar.
If we pretend that this does not exist, what is next to replace it, not the Yuan as this is not LatAm.
Perhaps the Mexican (post-“nuevos”,Series F) Peso? - perhaps too tight to the US $.
Perhaps the Chilean Peso?
Perhaps the Brasilian Real?
Perhaps the Argentinian Peso? Though we would surely need a S&P-type World Bank/IMF assessment of the real worth of the Peso, not the wishfully pitched pre- and post devaluation levels.
Would all the nations of Latin America tie their monitory sytems to a locked-in benchmark - like the EU Eurozone do with the Euro?
I think Unasur is light years away from accepting and making work a 'LatAm Real', a LatAm Peso, or whatever.
Geoff, don't wish us a common currency like the EURO.
Nov 18th, 2011 - 02:44 pm - Link - Report abuse 0You really must hate us, if you wish that for us... hehehe.
Hi Man,
Nov 18th, 2011 - 05:21 pm - Link - Report abuse 0no, wouldn't wish that on you;
even the UK stayed out of it, knowing just where its asymmetries would take the Zone if things went wrong.
I just fail to see how using 'local currencies' will help this vast region in its development and in international trade.
With the two SA trading blocs, to all intents and purposes, disbanded and disintegrated , it is “every man for himself, and man the national lifeboats!”
Bilateral deals using exchange rates between the two nations' 'local' currencies - eg the Chilean peso and the Chinese yuan - ARE the order of the day, but I'll bet these are benchmarked against the US dollar.
As the SA nations trading with (eg) China all have different currencies with different strengths, the strong will get stronger, and the weak will be picked-off like rabbits in a gun-sight . .
. . . though I doubt that this is what the Argentine Vice President Elect had in mind, as his country will be amongst the first to get the rabbit-treatment.
You're right on the benchmarking, there should be different focuses, also not only Yuan, but also the Euro.
Nov 19th, 2011 - 12:33 am - Link - Report abuse 0Nevertheless, we must consider that both extremes, weaking and strengthening have their pro's and cons. For Argentina, I don't see that the weakening of the currency damages then too much, as it keeps their industry alive (of course with the population payind the bill of devaluation). In Chile, we also have troubles with the strength of the peso, as this also hinders creation and incentive of own industries, we suffer the dutch disease...
yea good idea but who will be in charge of busting CIA couterfed bills ???? maybe its time they switched to a more reliable currency like GOLD coins. it will also help to have a 100% national banks and to lower the service charges on loans to a fee rather then interests, but a gold currency would be an exellent start and you won't have to beg anyone to buy it.
Nov 20th, 2011 - 09:56 am - Link - Report abuse 0Commenting for this story is now closed.
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