First Amendment:
The economic teams of Argentina and Brazil are working on proposing a common currency for commercial transactions. The currency will initially be shared by these two countries and will seek to avoid dependence on the US dollar to eventually make way for a common currency in Mercosur, consisting of Argentina, Brazil, Paraguay and Uruguay, but with the aim of other countries of the region could join the initiative. Is it a viable project? We analyze it in this program.
In the world there are many regions that have a common currency for their commercial uses or for their legal contracts. In Africa, the CFA franc is used by 14 countries on that continent, most of which are former French colonies, as well as Equatorial Guinea, a former Spanish colony, and Guinea-Bissau, a former Portuguese colony.
The CPF franc is used among the French overseas territories of French Polynesia, New Caledonia and Wallis and Futuna, all in Oceania.
The pound sterling is legal tender in the four countries that make up the United Kingdom, but also in Crown Dependencies such as the Isle of Man and Jersey, and in British Overseas Territories such as Bermuda, the Falkland Islands and Gibraltar, where a copy is used. The local pound, such as the Falkland pound or Saint Helena, which is equivalent to the pound sterling.
The East Caribbean dollar is used in six independent countries and in two territories of the United Kingdom, Anguilla and Montserrat. Issued by the Central Bank of the Eastern Caribbean and headquartered in Basseterre, the capital of Saint Kitts and Nevis.
Perhaps the most recent example of the application of the single currency is the euro. It is used by 17 countries in the European Union, as well as Andorra, Vatican City, Monaco, and San Marino, where it is the official currency. It is also used informally, but in all daily activities, in Kosovo and Montenegro.
Finally, the US dollar is probably the most widely used international currency for business transactions. In addition to the United States and its territories, the dollar is also legal tender in Puerto Rico, El Salvador, Panama, Ecuador, the Marshall Islands, the Federated States of Micronesia, Palau, East Timor, the United States, the British Virgin Islands, and Turks and Caicos.
Other examples are the New Zealand dollar, the South African rand, the Russian ruble, and the Australian dollar, among other popular currencies.
Is the single currency initiative a viable project? Is it possible to have a single currency with economies as disparate and unstable as those of Latin America? We address this topic from the hands of our guests:
Diana Mondino is an economics graduate and professor of finance at CEMA University in Buenos Aires, Argentina.
– Juan Carlos Martinez, Professor of Economic Environment at IE University, from Madrid, Spain.