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Brazilian minister believes that the possibility of having a common currency with Argentina is “distant”

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.

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Mexico aims to be a smart city thanks to Fintech

The technology in the financial sector can help to position Mexico as an economic force in Latin America, according to financial expert Alexis Nickin.

For the specialist, technological innovation in the financial sector has generated new opportunities in many areas. For example, it allowed Small and Medium Enterprises (SMEs) to gain credits and short-term benefits, which if they had been requested through traditional banking would have been expensive and complicated due to the processes.

These opportunities produced a growth of 18 percent in the Fintech ecosystem of Mexico, where about 400 fintech startups were created in 2018 alone, placing Mexico as a leader in the Latin American region.

On the other hand, the user experience improved significantly, since 56% of Mexicans want to pay with a smartphone and 55% of users of finance applications seek to make specific operations easier. There is also the possibility that users can obtain a personalized service through profiles. In this way, the services that customers need are better focused.

According to Alexis Nickin, the incorporation of Fintech to SMEs is essential since digital consumers in Mexico prefer to use this type of platform as a means of payment.

“New technologies have come to change the lifestyle of people and went from being a great innovation to being part of the daily lives of thousands of Mexicans, so it is necessary for companies to understand the new behaviors of digital consumers in Mexico and implement the best of financial technology,” said Nickin.

With the application of the financial ecosystem, new tools and opportunities were also deployed. Options such as crowdfunding, investment platforms, mobile banking, legaltech or regtech are tools that open up even more possibilities for services to users, while promoting the development, growth and consolidation of the sector.

According to Fintech Radar, most of the financial innovation is concentrated in the Mexican capital, since there are more than half of Fintech startups with 53%, followed by Monterrey and Guadalajara, with 15% and 11% respectively, according to data from a survey published in 2018.

According to the document, about 8 million active users are registered in Fintech. In Mexico, they trade around 39 billion pesos monthly.

The expert points out that the current use of technology is key to growth: “We must rely on available technologies. The Fintech have driven Mexico and have led it to become a leading country in financial innovation,” he emphasized.

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Argentina: The dollar continues on the upward path, rising almost 40 cents and closed at $43.78 in Buenos Aires City

The dollar advanced on Tuesday almost 40 cents and closed at $43.78 in agencies and banks of the City of Buenos Aires, thus prolonging the change in trend initiated at the beginning of the week, when it climbed just over 50 cents.

This phenomenon is repeated in the Single and Foreign Exchange Market, where the wholesale dollar closed at $42.46 for the purchase and $42.66 for the sale, that is to say, twenty-six cents above the values ​​recorded in the previous end.

Gustavo Quintana, of PR Corredores de Cambio, stressed that “the buying trend was maintained yesterday, with an active demand that drove a new advance in dollar prices.”

“The official activity in the futures markets softened the upward curve of the exchange rate in the wholesale segment, somewhat limiting the second consecutive rise in prices,” Quintana said.

Tuesday’s wheel seems a continuity of Monday’s, when, given a shortage of supply, the greenback rose 56 cents and recovered in a single wheel the cumulative fall of the last two weeks.

It was in tune with the wholesale segment, where the currency rose 80 cents to $ 42.40, in a wheel in which the Central Bank validated a new drop in the monetary policy rate, the lowest since March 11.

Among the factors that explain the sudden rise of Monday include the following: to a large extent a marked contraction in the level of supply of agro-exporters, and at the same time, the reappearance of the demand for coverage, amid a surplus of liquidity of pesos, along with the market perception of a “somewhat lagging” dollar price .

From ABC Mercado de Cambios they pointed out that the escalation registered in the MULC “reflects the lack of liquidity of the market, which with only $ 27 million traded on closing, the currency rose 40 cents” due to the shortage of agricultural supply that “there will be liquidated about $100 million.”

For his part, Quintana warned that “although a correction that at some point would temper an incipient exchange delay process was expected, it does not seem very desirable that the price update be carried out abruptly, a factor that sometimes generates some disturbance in the market.”

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AMLO asks senior finance officer to withstand pressure

President Andrés Manuel López Obrador asked the senior officer of the Ministry of Finance and Public Credit (SHCP), Raquel Buenrostro, to withstand all the pressures and threats, in order to meet the goal of savings in purchases of the federal administration.

He claimed to have an agreement with Buenrostro to “support her in everything and to withstand all the pressures,” after it has been indicated to have been one of the officials with whom the former Secretary of the Treasury, Carlos Urzúa, had differences that led him to present his resignation.

During the Dialogue with the Community of the Rural Hospital of Villamar, in Michoacán, he said that the senior officer must withstand the pressures “because there are many vested interests,” because she has the instructions to save at least 20 percent of the 200 thousand million pesos that the government allocates to its purchases.

“We are going to save at least 20 percent this year; this is 200 billion pesos that were nailed,” said Andrés Manuel López Obrador, President of Mexico.

Speaking before hospital staff in this municipality, the head of the federal Executive said that there is a shortage of doctors to meet the needs of the entire country, with a staff of 270,600 general practitioners, when according to international standards there must be at least 393,000 doctors.

“We lack 123,000 doctors in the country,” said López Obrador and mentioned that this lag is due to universities not accepting medical students; the National Autonomous University of Mexico (UNAM) rejects 98% of applicants.

In this regard, he explained that at the beginning of the year, 13,711 applicants presented their exam for the medical career in the highest house of studies, and only 211 entered, which corresponds to two percent.

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Trump points to cryptocurrencies: “They can facilitate illegal behavior”

The US president, Donald Trump, expressed on Thursday his distrust of cryptocurrencies, which in his opinion are not real money, and warned Facebook and other groups that want to venture into them that they must comply with global financial rules.

“I am not a fan of cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” the president tweeted, insisting that those virtual currencies generated electronically, which guarantee great discretion and are virtually undetectable, “can facilitate illegal behavior.”

Cryptocurrencies are all the rage after the success of bitcoin and there is currently a large group of them. But the announcement on June 18 by Facebook that it plans to launch into the arena with Libra has sparked a shockwave among financial regulators worldwide.

With more than 2 billion users, the electronic currency that the main social network wants to launch in 2020 with a number of partners could alter the entire monetary ecosystem.

Trump warned Facebook “and other companies” that if they want to become banks they must respect the regulations both in the United States and in the rest of the world.

“We have only one currency in the United States … and it is called the US dollar,” he said.

The announced arrival of Libra and cryptocurrencies in general will be the subject of a report to be presented to the G7 countries at a meeting next week.

“I think it will be necessary to make a prudent and thorough assessment of the risks” that the Libra project entails, said the head of the US central bank, Jerome Powell, on Thursday before Congress.

According to Facebook, since the beginning of 2020 the “Libra” would allow millions of people without access to banks to integrate from their smartphones to the financial system.