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Montevideo, June 18th 2019 - 16:59 UTC

 

 

Brazil central bank denies plans for a monetary union with Argentina

Saturday, June 8th 2019 - 09:53 UTC
Full article 7 comments
“The central bank of Brazil does not have any plans or studies in progress for a monetary union with Argentina,” it said in a statement “The central bank of Brazil does not have any plans or studies in progress for a monetary union with Argentina,” it said in a statement
A spokesperson for Argentina’s Ministry of Finance said on Thursday that the two governments are negotiating the creation of a joint currency, the “Real Peso” A spokesperson for Argentina’s Ministry of Finance said on Thursday that the two governments are negotiating the creation of a joint currency, the “Real Peso”

Brazil’s central bank has denied any planning is underway to create a monetary union with Argentina, after a spokesman for the government in Buenos Aires said on Thursday it was the case.

“The central bank of Brazil does not have any plans or studies in progress for a monetary union with Argentina,” it said in a statement late on Thursday night.

“As is natural in a relationship between partners, there is dialogue on macroeconomic stability as well as discussions about reducing risk and vulnerability, and the strengthening of our institutions.”

A spokesperson for Argentina’s Ministry of Finance said on Thursday that the two governments are negotiating the creation of a joint currency that could be called the “real peso,” combining the names of Argentina’s peso and Brazil’s real.

“We are working on that in the medium to long term,” the spokesperson said during a visit to Buenos Aires by Brazilian President Jair Bolsonaro and Economy Minister Paulo Guedes.

According to Brazilian newspaper O Globo, Bolsonaro and Guedes told Argentine and Brazilian business leaders at a meeting in Buenos Aires that they would like to explore the idea. The general reaction back home was skeptical.

“Really? You’re going to devalue the real? The dollar worth R$6.00? Inflation coming back? I hope not,” tweeted Rodrigo Maia, president of Brazil’s lower house of Congress, on Friday.

Categories: Economy, Argentina, Brazil.

Top Comments

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  • DemonTree

    A lie can travel halfway round the world before the truth has got its boots on.

    Totally agree about Bolsonaro, MarkWhelan.

    Jun 09th, 2019 - 08:36 am +3
  • MarkWhelan

    Unfortunately Bolsonaro seems to suffer from 'Trumpism' ( the affliction that causes a person to put his mouth into gear before the brain is engaged). There have been many cases when Bolsonaro has opened his mouth without thinking about what he was saying. Correct me if I am wrong but from memory he only rose to the level of Captain in the military. As anyone with military experience knows service personnel are not allowed to think until they reach the rank of Brigadier General and even then what they say is to be totally disregarded in relationship to anything resembling real life.

    Jun 08th, 2019 - 02:29 pm +1
  • Enrique Massot

    MW

    The rational for Bolsonaro's inability to control his Trumpism is impeccable.

    On the other hand, the Argentines know Mauricio Macri is a pathological liar, so it appears the effect was compounded by two in this case.

    A lie has no legs.

    Jun 09th, 2019 - 04:09 am +1
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