Real weight The government advances in a common currency with Brazil

They said it today

Jair Bolsonaro

and Paulo Guedes, President and Minister of Economy of Brazil, in front of businessmen and other ministers
Buenos Aires, and quickly Japan, the minister's environment

Nicolás Dujovne

He confirmed: Argentina and Brazil are moving in the idea of ​​creating a new common currency, which would be called "the real peso".

This is the reason why Dujovne, who is currently attending the G20 meetings in Asia, went to Rio de Janeiro on April 26th. "To deepen Mercosur, we must move towards a common currency," agreed the two delegations. Negotiations began 13 days earlier in Washington when the ministers agreed at the International Monetary Fund (IMF) meeting.

In principle, they trade only this new currency, Argentina and Brazil, but do not exclude the subsequent addition of Paraguay and Uruguay, and one " Democratic Venezuela ". Likewise, first and foremost, the measure should be adopted by the parliaments of each country.

"The idea is to talk about monetary integration, as the economic literature says, and what happened in Europe, and we started talking about it when we met in the United States in April, Rio de Janeiro for discuss this issue, "said Treasury sources.

"Brazil and Argentina are exposed to the same external shocks, their currencies are highly correlated, in relation to the vagaries of US policy and commodity price movements, we have a lot of bilateral exchanges and sometimes shocks.The monetary aspects of one economy or the other have prevented a deepening of the commercial sector, one being more competitive than the other, "they added.

The timetable is to move as soon as possible, they told the government. In Brazil, they commit themselves first of all to the adoption of the pension reform. "It will then be a priority project for both countries.The idea is to generate a new currency, which can be called
real weight; neither weight nor reality, "official sources said.

This would also require the creation of a supranational monetary institution, such as the European Central Bank. The other monetary entities of each country are released after this institution.

"So far, talks have been held with Brazil.This is a political decision almost as important as the formation of Mercosur.If it is considered that the The magnitude of this decision is very powerful and it must of course that it goes through parliaments, it's not a policy. " It's a slow process, but ultimately, if there is a political consensus, it can be implemented, "explained the Ministry of Finance.

Dujovne and Guedes did not know each other before becoming civil servants. However, the good relations born between the two men allowed to advance in the idea of ​​the single currency.

Near the Minister of Production and Labor, Dante Sica, they recognized
THE NATION Guedes has had this idea for some time and both countries have for the first time in their history reform programs and a similar set of macroeconomic policies, which would facilitate this option. "These are conversations, there are discussions and a lot of harmony," they added.

"It is something that exists at a given moment as a possibility, corollary of the greatest integration in the world, of a greater commercial openness, of several agreements with the world," they said near Sica. "On both sides, we believe in fiscal discipline, the floating exchange rate and the creation of an independent central bank," they added, close to the man who knows Brazil best.

"If we deepen the relationship, get more integration and modernize the work system, we'll see how that progresses, it's a political goal, even if it's not something that's going to be defined." aujourd & # 39; hui ". It's true that Guedes mentioned it in January, "they acknowledged.