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Brazilian President defends single currency for South America

In the event attended by 11 South American leaders, President Luiz Inácio Lula da Silva (PT) defended regional integration and stressed the importance of Unasur.

Lula declared that the interests that unite the countries are more relevant than possible ideological differences.

This statement was a response to the criticism about the reactivation of the organ being related to a left-wing political tendency in the region.

President Luiz Inácio Lula da Silva met with presidents of South American countries at the Itamaraty Palace (Photo internet reproduction)

He defended the idea that the nations adopt strategies to “deepen the South American identity also in the monetary area, through a more efficient compensation mechanism and creating a common reference unit for trade, reducing dependence on extra-regional currencies.”

“Allowing divergences to impose themselves would have a high cost, besides wasting much that we have already built together,” Lula said.

In line with previous speeches, he also proposed the creation of a “common reference unit for trade” to try to reduce dependence on the dollar.

The Brazilian president presented nine suggestions to boost the economic and social development of the South American region.

Among them is the proposal to use regional savings with the collaboration of development banks such as CAF, Fonplata, Banco del Sur, and BNDES.

Other suggestions presented by President Lula are the implementation of regulatory convergence initiatives, which seek to simplify procedures and eliminate bureaucracy in exporting and importing goods.

In addition, he proposed to expand cooperation mechanisms through services, investments, electronic commerce, and state-of-the-art competition policy measures.

With information from Gazeta Brasil

News Brazil, English news Brazil, South American politics

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