Former WTO Negotiator Şahin Yaman, who was a guest of the Bloomberg HT broadcast, made evaluations about the preparations for Brazil and Argentina to switch to the common currency unit.
Yaman stated that the attempts of Brazil and Argentina to establish a common currency unit go back to the hyperinflation periods of the 1980s. Yaman said that Brazil and Argentina act together in terms of money and foreign trade system.
“There is a tectonic shift in the world economic system,” Yaman said, adding that Brazil and Argentina’s attempts to establish a common currency unit are an objection to the unfair global financial system.
Stating that Brazil and Argentina want to develop their commercial and economic relevance in the shrinking global economy, Yaman emphasized that these two countries want to play a leading role in Latin America.
Emphasizing how ready Brazil and Argentina are to adopt a common currency unit, Yaman said, “It is not possible for them to establish the monetary system at the moment, since there is no optimum currency area. This is not possible because labor cannot harmonize capital movements with monetary and fiscal policies in a very short time.” used his words.