Cafiero stated that the existence of such a currency would relieve the stress that the country is currently facing regarding the state of its foreign reserves and the devaluation of its fiat currency.Santiago Cafiero, foreign minister of Argentina, talked about the benefits that the existence of a common currency for countries in Latam would bring to the region and his country.
Argentina has been battling a reduction of its foreign reserves in dollars, which have to be used to pay for imports due to the current structure of international trade. This has led the Argentine government to try to substitute the use of dollars for the Chinese yuan in its bilateral settlements with China, to preserve its dwindling reserves.
The initial reports pointed at this project being similar to the euro, a substitute for the fiat currencies of several countries of the region, with Argentina and Brazil being the firstThe proposal was later discussed by the governments of Argentina and Brazil at the CELAC commitment in Buenos Aires in January, where the two governments signed a document to start working on the creation of this common...
that its usage would be limited to settlements between countries of the Common Southern Market and the BRICS bloc, which is also studying to issue its own common currency.