Proposed Brazil-Argentina common currency is met with doubts from experts

ASSOCIATED PRESS RIO DE JANEIRO — A proposal floated by the leaders of Brazil and Argentina to launch a common currency is being met with deep skepticism by

analysts, who say neither country is positioned to tackle such a complicated undertaking or instill confidence in the idea with global markets. Brazil’s President Luiz

Inácio Lula da Silva told reporters Monday, though, that a common currency would reduce a harmful dependence on the U.S. dollar. “I think this will happen with time, and

it is necessary because there are countries that sometimes have difficulty acquiring dollars,” Lula said in Buenos Aires after meeting his Argentine counterpart, Alberto

Fernández. “We must not in the 21st century continue doing the same as what was done in the 20th century.” The currency would initially be shared between Argentina and

Brazil for trade and transactions between the two countries and later be adopted by fellow members of the Mercosur trade bloc, Lula explained. Details remained fuzzy a day after

Lula and Fernández announced the outlines in a joint statement published Sunday in Argentine newspaper Perfil. Speaking in Buenos Aires on Monday afternoon, Brazil’s

Finance Minister Fernando Haddad clarified that the proposal would not entail the adoption of a sole currency to replace the Brazilian real and the Argentine peso