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London
CNN
—
The two biggest economies in South America are starting talks to create a common currency. Analysts are skeptical.
Brazil’s President Luiz Inacio “Lula” da Silva and Argentina’s President Alberto Fernández wrote in a joint piece published in Argentinian paper Perfil Sunday that they wanted to foster greater integration between the two neighbors.
The pair said they had “decided to move forward with discussions about a common South American currency that could be used for financial and commercial flows, reducing operating costs and our external vulnerability.”
The announcement came as Lula visits Argentina for his first trip abroad since taking office at the start of the month. At a press conference in Buenos Aires, he said establishing a common currency for trade would reduce reliance on the US dollar, whose sharp ascent last year was painful for…
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