“Although each state may have its own fiscal policy, Brazil should imagine a closer relationship, with a free trade area,” he defended during a meeting of the Brazilian Senate Foreign Affairs Committee, reports say.
“We could have full interaction and, in that sense, Brazil would assume a role like Germany’s in Europe, “he added.
Guedes predicted that in about 15 or 20 years there will only be five or six major currencies in the world, including the euro, the Chinese yuan, and the US dollar, so he urged to follow the example of the European Union.
“Europe started with a common market, then it led to the uniformity of exchange rates and finally it reached the monetary union, the pinnacle of integration,” he continued.
In his opinion, a common currency would be a “blessing” for South America and help to cope with the economic problems in the region.
“Argentina practically lost the currency due to inflation of 50%, in Venezuela hyperinflation, Ecuador was forced to change to the dollar. In the future it could follow the path of monetary integration“Guedes asserted.
Finally, he pointed out that, if the idea materializes, the Central Bank of Brazil could become the central mechanism for integrating the new currency.