• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Tuesday, March 28, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

Is a common Latin American Currency feasible?

Rohit Yadav by Rohit Yadav
January 28, 2023
in Americas
Reading Time: 3 mins read
0
common currency
98
VIEWS
Share on FacebookShare on Twitter

Latin America is no stranger to foreign intervention and instability. Subject to global power play, the continent has seen extreme political turmoil and economic instability. Many leaders have tried to circumvent foreign powers and domestic chaos. The most recent ones are Argentina and Brazil.

Argentina and Brazil are planning on introducing a common currency. The project has rocked the financial market. As usual, it has attracted severe criticism from the West. Several countries in Latin America have cherished the idea of a common currency, like the Euro in European Union. It may not be far, when the region will indeed realise its dream.

Also Read

Lithium OPEC: Bolivia drops a bombshell

BRICS: Brazil’s ambitious plan to shake up global politics

But, how feasible is a common currency for both the countries?

Widespread support

The two biggest economies in South America have discussed ways to coordinate their currencies for many years. It was a way to challenge the dominance of the dollar in the area.

Brazil's Lula meets Argentina's Fernandez in first international trip
Source: TRT World

Last week, Argentina’s Alberto Fernandez and Brazil’s Lula da Silva, published a joint statement. It underlined the potential benefits of a common currency for increased regional trade. The statement read, “We have the intention of overcoming barriers to our exchange, simplifying and modernizing the rules and promoting the use of local currencies.”

The project can position the Latin American region as a significant geopolitical and economic power. It would be able to export a wide range of goods in addition to being self-sustainable. Also, the fact, that Lula, a political heavyweight in Latin America, took up the issue demonstrates, that it has the potential to elicit strong political and emotional responses from people.

The concept is not new. Fernando Haddad, an ex-presidential candidate in 2018 had proposed the idea. He even proposed the name ‘sur’, which means south. Venezuela’s President Nicolas Maduro too, had brought the idea last year. He recommended promoting the Sucre, a currency used by the ALBA coalition of states. ALBA is predominately made up of Bolivia, Cuba, and other smaller West Indies nations. Gustavo Petro of Colombia too, supports integration of Latin America.

Basically, there are favourable winds across the continent for a common currency.

Read More: The siege of Brazilian democracy

Is a common currency feasible?

The path to a common currency can be very complicated. The countries that’ll opt for the project will have no influence over domestic policies over other nations. Thus, any domestic instability might easily derail the project.

Additionally, the organisation in charge of running the regional system will make all economic choices. It could possibly lead to internal skirmishes in the region where the majority of the nations are impoverished and the social and economic conditions are unequal.

Brazilian President Luiz Inácio Lula da Silva assured from Argentina that the common currency is “something that is going to happen” - Breaking News Network
Source: Breaking News Network

The biggest challenge would be to establish a common fiscal-monetary policy, which is a major undertaking and a sensitive issue for the countries.

Read More: Latin America lambasts USA as it overthrows Peru’s Pedro Castillo in broad daylight

Hence, a common currency would initially require many negotiations between the future partners. It needs a strong political will and patience.

Though, the project is not without its merits. The joint statement between Argentina and Brazil also mentions that a common South American currency will reduce their external vulnerability. It is obvious what the statement means. The countries in the region have been continuously sanctioned by USA, undermining their sovereignty.

A common currency has the potential to be a game changer for the Latin American economy. By reducing transaction costs, increasing investment and promoting economic integration, it could lead to greater economic growth and development. Furthermore, it could be a major source of foreign exchange reserves for the participating countries.

Ultimately, the success of the common currency will depend on how well it is implemented, and the commitment of the participating countries to make it a success. And, that’s tricky.

Tags: AmericasArgentinaBrazil
ShareTweetSend
Previous Post

It’s Gangs vs. Police vs. Henry in Haiti. And Haiti is the biggest loser in this

Next Post

Political Instability – Latin America’s biggest obstacle

Also Read

How a DEA chief in Mexico ended up working with narcotraffickers

How a DEA chief in Mexico ended up working with narcotraffickers

March 28, 2023
Lithium OPEC: Bolivia drops a bombshell

Lithium OPEC: Bolivia drops a bombshell

March 28, 2023
Bolivia’s pacific battle

Bolivia’s battle for Pacific access against Chile

March 27, 2023
BRICS: Brazil’s ambitious plan to shake up global politics

BRICS: Brazil’s ambitious plan to shake up global politics

March 27, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
Africa kicks dollar to the curb

Africa kicks dollar to the curb

March 14, 2023
Did Ukraine use innocent civilians as human shield against Russia in the name of evacuation?

Did Ukraine use innocent civilians as human shield against Russia in the name of evacuation?

May 9, 2022
Romania’s rising star, Diana Sosoaca is making the West anxious

Romania’s rising star, Diana Sosoaca is making the West anxious

March 27, 2023
Jagmeet Singh is burning the bridges between India and Canada

Jagmeet Singh is burning the bridges between India and Canada

March 21, 2023
Iran relations

NATO fears losing out to Iran

March 22, 2023
Indonesia’s Shocking Decision on Visa and Mastercard!

Indonesia’s Shocking Decision on Visa and Mastercard!

March 28, 2023
How a DEA chief in Mexico ended up working with narcotraffickers

How a DEA chief in Mexico ended up working with narcotraffickers

March 28, 2023
US and its European lackeys are trying to kick Russia out of the WTO, but it’s not happening

US and its European lackeys are trying to kick Russia out of the WTO, but it’s not happening

March 28, 2023
Trudeau chooses the most environment unfriendly hotel in Egypt to attend an environment summit

Trudeau chooses the most environment unfriendly hotel in Egypt to attend an environment summit

March 28, 2023
Going all in: UK’s African Gambit aims to score big at UK-Africa investment summit

Going all in: UK’s African Gambit aims to score big at UK-Africa investment summit

March 28, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.