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Argentina, Brazil to discuss linking currencies
Buenos Aires, May 05: Argentina and Brazil are to discuss bringing their currencies into line as a first step toward a single currency, Argentina`s deputy foreign minister Martin Redrado said today.
Buenos Aires, May 05: Argentina and Brazil are to discuss bringing their currencies into line as a first step toward a single currency, Argentina's deputy foreign minister Martin Redrado said today.
"The currencies are worth almost exactly the same, this is the time," Redrado told la Nacion newspaper in an interview.
Argentina's peso and Brazil's real have been edging toward the same rate against the US dollar. On Friday, the dollar traded at 2.81 pesos and at 2.9 reals. Argentina and Brazil are the economic powerhouses behind the Mercosur Trading Bloc, which also includes Paraguay and Uruguay, with Bolivia and Chile as associate members.
Marco Aurelio Garcia, an aide to Brazilian President Luiz Inacio Lula Da Silva, said the band "would be a key step for Mercosur," according to La Nacion. Argentina and Brazil have suffered economic turbulence in recent years and their leaders have made strengthening Mercosur a priority in their foreign policies.
"This is the moment to seriously consider the creation of a band within which the real and the peso would trade, which would give some certainty to people who trade with us or who invest in our countries," Redrado said. The currencies could be fixed within a band at about three to the dollar, as authorities in both countries want their national currencies slightly weaker than they are now, the paper reported.
Bureau Report
Argentina's peso and Brazil's real have been edging toward the same rate against the US dollar. On Friday, the dollar traded at 2.81 pesos and at 2.9 reals. Argentina and Brazil are the economic powerhouses behind the Mercosur Trading Bloc, which also includes Paraguay and Uruguay, with Bolivia and Chile as associate members.
Marco Aurelio Garcia, an aide to Brazilian President Luiz Inacio Lula Da Silva, said the band "would be a key step for Mercosur," according to La Nacion. Argentina and Brazil have suffered economic turbulence in recent years and their leaders have made strengthening Mercosur a priority in their foreign policies.
"This is the moment to seriously consider the creation of a band within which the real and the peso would trade, which would give some certainty to people who trade with us or who invest in our countries," Redrado said. The currencies could be fixed within a band at about three to the dollar, as authorities in both countries want their national currencies slightly weaker than they are now, the paper reported.
Bureau Report