Elon Musk considers a common currency proposal between Argentina and Brazil a "good idea"

The controversial South African tycoon Elon Musk, one of the most influential names in the business world, reacted favorably to the proposal to create a common currency between Argentina and Brazil, two of the strongest economies in Latin America.

“Probably a good idea,” Musk responded on Twitter, social network of which he is still CEOto the publication middle british Financial Times on the Brazilian-Argentine currency.

The launch of this initiative It was one of the points that they dealt with the presidents of Brazil, Luiz Inácio Lula da Silva, and of Argentina, Luis Fernández, during a meeting this monday in Buenos Aires, prior to the summit of the Community of Latin American and Caribbean States (Celac).

The initiative for a common currency, to which other countries in the region are invited and which would have the potential to be the second largest monetary union after the Euro, is a long-standing aspiration of veteran President Lula Da Silva, who assumed the Brazilian head of state for the third time on January 1st.

With the initial name Sur, this currency would circulate in principle in parallel to the Argentine peso and the Brazilian real. “There will be a decision to start looking at the necessary parameters for a common currency, which includes everything from fiscal issues to the size of the economy and the role that central banks will play,” he told the Financial Times the holder of Argentine Economy, Sergio Massa.

“It is the first step on a long road that Latin America must travel,” said Massa, adding cautiously that he does not want to “generate false expectations.”

After the uproar over Musk’s response, the Casa Rosada spokeswoman, Gabriela Cerruti, reacted to the magnate’s tweet, assuring that the Brazilian president’s visit was “causing everyone to talk about it.”

renewed ties

Lula Da Silva’s visit to Argentina will be his first abroad since his return to the presidency. The trip is seen as a way to strengthen ties between two major trading partners after a four-year estrangement under former President Jair Bolsonaro.

Lula Da Silva and Fernández, of leftist tendency, confirmed that they are working on the proposal, which had already been mentioned by the Brazilian president in his campaign and even before, during his first term in 2002.

“We have decided to advance in the discussions on a common South American currency that can be used for both financial and commercial flows, reducing operating costs and our external vulnerability,” they said in a joint article on Sunday, prior to Lula’s arrival in Argentina.

We intend to break down the barriers to our exchanges, simplify and modernize the rules, and encourage the use of local currencies,” they said.

Both presidents insisted that “the fluid and dynamic relationship between Brazil and Argentina is essential for the advancement of regional integration.”

Connect with the Voice of America! Subscribe to our channel Youtube and activate notifications, or follow us on social networks: Facebook, Twitter and instagram.