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Common Currency Discussions, Lula To Meet Argentina’s Fernandez

BRAZIL
  • President Lula’s comments regarding the central bank’s autonomy last week have raised concerns on the potential replacement of the bank’s monetary policy director, Bruno Serra, expected for the coming weeks.
    • Market participants concern centre around Serra being replaced by someone more aligned with President Lula’s thinking than that of the current team.
  • Separately, Argentina and Brazil are reported to be in the preliminary stages of renewing discussions on forming a common currency for financial and commercial transactions, reviving an often-discussed plan that would face numerous political and economic hurdles. (BBG)
    • It would be created to boost trade between the two counties and would not replace the current Brazilian real and Argentine peso as national currencies, Valor said, citing Finance Minister Haddad.
  • Lula makes his first international trip, and is scheduled to meet his Argentine counterpart Alberto Fernandez and local businessmen, according to Brazil’s Foreign Affairs Ministry.

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