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The governments of Argentina and Brazil have announced that they plan to create a single currency that can be used for both financial and commercial flows, and will seek to extend this measure “in the long term” to other countries. Latin America. But what is the position of Peru?
Economics and Finance Minister Alex Contreras notes that the idea is “unrealistic” due to high-inflation conditions in both countries.
“There are a number economic conditions that at the moment none of the three countries is implemented (…) I see this as unrealistic,” he said during a press conference.
Contreras argued that this is a difficult agenda, and recalled that the creation of the euro, the common currency of the EU countries, took a long time and the stability of inflation.
“The adoption of the euro in the European Economic Community took decades to streamline the fiscal accounts, to stabilize inflation (…) Brazil is a country with historically high inflation, Argentina is a country with double-digit inflation,” he said.
The Minister explained that the use of currency in the international market depends on its capacity, its strength, which is supported by fiscal power.
“What is he doing currency Its value lies in the confidence that this currency will retain its value, and this is something that neither Argentina, nor Brazil, nor Venezuela have at the moment,” he added.
He also noted that Peru has the most stable currency in the region, because we have inflation under control and an independent central bank, while in Argentina “there is a budget deficit, which is covered by the issuance of money, there are questions and inflation, which is observed real inflation.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.