Mujica met with Lula and was against the common currency between Argentina and Brazil

Mujica expressed that “right away we go to the great thing, We want a central bank for America!“, alluding to the new currency, when they are currently locked payments for imports made by Argentina for its terms in the transfer of dollars. On this, the former head of state argued that to do something like this, you must first go through “many stages” and do “many things.”

Expanding on this, he told Lula that the south american bloc needs to “a name, a flag, a hymn, because humans are mythological” and to the ideas “we have to symbolize them”. Along these lines, he affirmed that these things must be done “for humans, not for economists.”

The former president went further and added that “If we don’t give the masses myths, they won’t understand“. In addition, he was accompanied by his wife, Lucia Topolanskythe president of the Pit-Cnt, Marcelo Abdalaand the mayor of cannelloni, Yamandú Orsi, possible front candidate. The canary has the support of Mujica in the internal opposition, so his presence symbolized political support following the meeting this followingnoon between Lula and the mayor of Montevideo, Caroline Cosse.

Lula Orsi Mujica

Lula together with the mayor of Canelones, Yamandú Orsi, and José Mujica.

Photo: Yamandú Orsi team.

On the other hand, the Brazilian hierarch’s delegation was made up of his Minister of Economy and ex-candidate for president of Brazil for the workers party (PT), fernando haddad, Celso Amorim, special adviser on international issues, among others. At one point during the meeting, Lula got on Mujica’s characteristic “beetle.”

What is the local currency payment system that Mujica referred to?

Recently, the Chamber of Industries of Uruguay (CIU), issued a statement requesting the adhesion of the Banco de la República Oriental del Uruguay (BROTH) al Local Currency Payment System (SML) of Mercosurso that the Argentina can pay for imports in Argentine pesos and thus unlock the payment of Uruguayan exports towards that country that presents terms of 180 days for payment in dollars of foreign placements.

From the CIU, they hope that the proposal will be approved by Uruguay, to be able to undo the obstacles of pending operations by large and small industrialists. The current situation in Argentina, of six-month payments, does not make it feasible to project their export businesses to Uruguayan companies, so industrialists welcome this way of invoicing in Uruguayan pesos —as if it were a sale in a local plaza.

If the proposal materializes, the Argentine importer would pay in Argentine pesos to the Central Bank of the Argentine Republic (BCRA) to buy the Uruguayan pesos, and the Central Bank of Uruguay (BCU) would give the industrialists, through the BROU, the Uruguayan pesos. The arbitrations will be resolved by the central banks of each country.

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