South America JUST REVEALED Their NEW Currency Set To SHUT DOWN The Dollar Dominance

Brazil and Argentina have had a complex relationship over the years. But the two countries have historically had strong economic, political, and cultural ties.

However, their relationship has been somewhat strained for the past few years. And one of the main reasons for this has been issues surrounding trade. Both Brazil and Argentina are significant exporters in South America, and competition between the two nations has led to tensions.

Despite these challenges, efforts have been made to improve relations and collaborate on trade and economic issues.

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And in recent years, there have been discussions and agreements to increase trade and investment between the two countries.

It’s common knowledge that Brazil and Argentina are the two largest economies in South America.

So, it’s a big news for the continent when they announced they’re planning to create a common currency to reduce their reliance on the US dollar.

The proposal was announced by Brazilian President Luiz Inacio Lula da Silva and Argentine President Alberto Fernández.

They said it would be used for trade and transactions between the two countries. And it could later be adopted by other members of MERCOSUR, South America’s major trade bloc.

This move comes as the countries look to find ways to decrease their vulnerability to currency fluctuations and economic instability caused by the US dollar.

However, not everyone is convinced that the idea is realistic. Analysts have raised concerns over the discrepancies between the two economies and the political instability in the region.

There are also concerns about MERCOSUR having yet to deliver on its primary goal of trade integration for its four founding members.

Furthermore, many experts argue that the process of creating a common currency would be a difficult and time-consuming task.

They also said it would involve a significant amount of coordination and cooperation between countries.

Head of Americas at risk consultancy Verisk Maplecroft, Jimena Blanco, called the proposal “pie in the sky.”

She remarked that “neither Argentina nor Brazil is reaping the economic or political conditions essential to start on such a dramatic transition. She also said this would take decades to be rolled out effectively.

Blanco also points out previous attempts at creating a common currency in South America.

Moreover, they previously attempted to make the Peso Andino and the Sucre, which were unsuccessful and failed to dent the importance of the US dollar in regional trade.

But despite the criticism, both presidents insist that the new currency is not intended to replace the Brazilian real or the Argentine peso.

Brazilian Finance Minister Fernando Haddad stated that the currency does not yet have a name or deadline. He also said the countries do not plan to seek a euro-style monetary unification.

Instead, the proposal is seen as a way to increase trade and economic cooperation between the two countries.

It also intends to create a more stable currency environment in South America.

Critics of the plan argue that the region’s lack of political and economic stability and the significant differences between the two economies make it impossible for the two countries to agree on a common currency.

However, supporters of the proposal argue that the benefits of a common currency would be worth the effort.

Now, having a common currency can benefit the countries that use it. And the best example of this is the Euro used by the European Union,

A common currency makes it easier and cheaper for them to trade goods and services with each other when countries use the same currency.

And so, this leads to increased economic activity and growth. Additionally, it is easier for people and businesses to move money between countries when countries use the same currency.

This can lead to increased investment and job opportunities. Argentina and Brazil are two countries in South America that have been discussing the possibility of creating a common currency for several years.

And if they were to implement a common currency, it could bring many benefits to both countries.

For example, increased trade and investment between the two countries would likely lead to more job opportunities and economic growth.

Additionally, reduced transaction costs would make it cheaper and easier for people and businesses to buy and sell goods and services between the two countries.

However, the two countries would need to address some significant economic challenges for a common currency to be successful.

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