Brazil and Argentina Are Discussing Whether to Combine Currencies

Argentina and Brazil are in the preliminary stages of renewing discussions on forming a common currency for financial and commercial transactions, reviving an often-discussed plan that would face numerous political and economic hurdles, Bloomberg News reported. South America’s two largest economies have considered options to coordinate their currencies for decades, often to counter the influence of the dollar in the region. The persistent macroeconomic imbalances of both countries, together with recurrent political obstacles to the idea, has resulted in little practical progress. The latest negotiations were initiated by Buenos Aires, according to a Brazilian government official. They’re at a very early stage and there’s no deadline for completion, said the official, who asked not to be identified because the discussions aren’t public. Brazil’s agreement was no more than a nod for talks to take place, the person said. Read more.