• President of Brazil Luis Inacio Lula Da Silva clarified the scope and reach of the common currency being studied by Brazil and Argentina.
• The currency would be used to settle cross-border payments between the two countries and also countries from BRICS and Mercosur.
• Fernando Haddad, minister of economy of Brazil, offered more insight into the objectives of the two countries.

The President of Brazil, Luis Inacio Lula Da Silva, has recently clarified the scope and reach of the common currency that Brazil and Argentina are studying to issue in Latam. Upon his arrival in Buenos Aires for the CELAC summit of chiefs of state, Lula explained that the discussion would revolve around the launch of a currency for multilateral settlements amongst countries of different integration groups, including BRICS and Mercosur. This currency would be used to settle cross-border payments not only between the two countries, but also countries from the BRICS and Mercosur region.

The Minister of Economy of Brazil, Fernando Haddad, offered more insight into the objectives of the two countries. Haddad stated that international trading transactions should be settled in currencies native to their countries, to reduce dependence on the U.S. dollar. He also pointed out that a common currency could help to grow trade between them.

The President of Argentina, Alberto Fernandez, also referred to the hypothetical currency in the same terms as Lula. Fernandez commented that they were still researching and trying to figure out how to make the currency work.

The two countries are currently working on a joint feasibility study to determine the viability of the common currency. However, Lula Da Silva has made it clear that the currency would not be imposed on any other countries in Latin America, and that it is only meant to facilitate trade between the two countries and other countries in the BRICS and Mercosur region.

In the end, only time will tell if the common currency will be successful or not. Nevertheless, the two countries have expressed their commitment to make it work, and to ensure that it will be beneficial for all countries involved.