OUR Brazil and Argentina talks are underway to create a common currency for use in trade between the two countries, the Brazilian president said. Luis Inacio Lula da Silva.

The aim of the plan is to reduce reliance on the US dollar, not to replace the two countries’ existing currencies, officials said.

“Finance ministers, each with their own team, can make us an offer on foreign trade and deals between the two countries,” Mr. Lula told reporters in Buenos Aires, where he met Argentine President Alberto Fernandez.

Brazilian Finance Minister Fernando Haddad and other officials downplayed scenarios for a full-fledged monetary union, focusing on boosting bilateral trade.

“Trade (i.e. between Brazil and Argentina) is really bad and the problem is foreign exchange. So we are trying to find a solution, something in common that could boost trade,” said Mr Haddad.

He noted that a “common unit for trade” could be developed, but rejected the idea of ​​a single currency in wider circulation.

^{According to REUTERS}