Good morning! Could Brazil and Argentina have a single currency? The pension reform drama continues. The Supreme Court’s privatizations trial.
A common currency for Brazil and Argentina?
During his first official visit to Argentina, President Jair Bolsonaro told a crowd of businessmen of the possibility of Brazil and Argentina sharing a currency. It already has a name: the “Peso Real.” But while industrialists showed enthusiasm about the idea, it seems more of a populist campaign slogan than an actual project of monetary integration between South America’s top 2 economies.
Argentine President Mauricio Macri is heading into what promises to be a very difficult re-election bid, with the Peronist ticket (including former President Cristina Kirchner as the VP candidate) leading the race, according to polls. Mr. Macri’s chances are hampered by the country’s current financial crisis and rampant inflation rate. The idea of the Peso Real could give the incumbent a discourse of hope to voters—especially since the Brazilian side declared the plan would only move forward if Mr. Macri wins another term.
Moreover, the Brazilian Central Bank declared no studies of a common currency have been done so far. Argentine analyst Gustavo...