Brazilian Economy Minister Paulo Guedes considered that the creation of a common currency between his country and Argentina is something “distant”, but warned that this intention would not be possible if Alberto Fernández wins the presidential elections.
The official explained that “when we talk about integrating with Argentina, we have to think that the countries that followed that process ended up with a common currency, and that’s why we talk about the ‘real weight’.”
“The understanding with Argentina was very fast because the Government sees that, in the face of high inflation, this monetary convergence could be timely to accelerate the price drop,” he added.
However, Guedes evaluated that “from the objective point of view, there was none of this yet. We are talking about a horizon where we could end up in a common currency. It is a horizon, but distant. Although without a doubt that, to accelerate this process, it would be a great help for Argentina.”
The Brazilian minister stressed that “having a common currency throughout Latin America would be very good. I think that in 15 years, there will be four or five major currencies in the world. In 15 years there will be the dollar, the euro, the Chinese renminbi, and I hope there is the real weight.”
“I think we are going to reach a common currency in the future. That would help Argentina a lot to fight its inflation, which will be in the order of 40% this year. If the Government’s political sign does not change, it is likely that let’s move on, “he emphasized.
However, he said that if Alberto Fernández wins the presidential elections, the discussion about the common currency will be “closed.”
“I imagine that neither Kirchnerist Argentina nor we would like to discuss a common currency, for being regimes with different conceptions. On the other hand, the proximity of Macri and Bolsonaro fits this vision of modernization of the economies very well. If neither of them continues, this reform would not be possible,” he stressed.