Officials in Mexico and Peru questioned the proposal for a common currency launched by the presidents of Brazil and Argentina.
The idea of creating the currency is not to replace national currencies, as occurred in the case of the euro, but would be aimed at commercial transactions between the two countries — and other Latin American nations that join in the future, according to Lula.
What does Mexico think?
- In a conference, President Andrés Manuel López Obrador said that his government “would not agree for many reasons”.
The head of the Mexican Executive said he was unaware of the details of the initiative proposed after a meeting between presidents Lula (PT) and Alberto Fernández, of Argentina.
[Mas] We would not agree. We have many reasons to continue to hold the dollar as a benchmark.”
President Andrés Manuel López Obrador
What does Peru think?
- The Minister of Economy and Finance of Peru, Álex Contreras, described the proposal as “unrealistic”
When asked about the matter, the head of the Peruvian government’s Economy said that “strong and stable” currencies would be needed to act as a leader in the international market, as reported by Forbes in Spanish. For Contreras, it is necessary to order the fiscal accounts and reduce inflation.
Economic conditions are needed that are not currently available.”
Alex Contreras, Minister of Economy and Finance
He also pointed out that, in this case, the sol —Peruvian currency— is stable and is protected by an “independent” central bank.