OPTIMUM

MONETARY AREA

Members:
John Anderson Perez
Karen Lizeth Linares
Geidy Natalia Tique
Carlos Andres Peña
 ◦ No, because it is evident that although
Latin America has been highlighted by its
economic growth, even economies are
very emerging and it is a late process
◦
Are all ◦ There is evidence of a phenomenon that
countries can make this change by having
ready to economic influences from the power
join right countries such as China and the US which
have bet in Latin America by providing
away? growth, but still limiting some countries
to a currency Transactional
◦
.

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◦ That is why the countries with a
good commercial strength and their
good growth prospects in the
medium and long term will be
joined by promoting the region
◦ What we want to create with this
new alliance is a cooperative
development between the
countries in the first instance and
other potential allies in the medium
or long term, this in order to
facilitate the trade and economy of
a large part of Latin America
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 THE
INTEGRATING
COUNTRIES
OF ULPE ARE:

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Brazil

This is an economically strong country in the region, although its government is far right we can find common
ground to enhance the region and the country as such

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MEXICO
Considered as the country strengthened in this Union and that the measures and restrictions it has had with the
Trump government has not affected him too much this country have much contribution to the countries of the
south of the continent and can be used as a bridge being this country also part Icipe of other international
alliances.

Thanks to the signing of trade agreements on three continents, Mexico is positioned as a gateway to a potential
market of more than one billion consumers and 60% of world GDP.

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COLOMBIA
It has consolidated itself as a country with constant stability and growth, prospects as a country with a foreign
investment and its production of raw and natural materials are the support for stability in the International
alliance
Colombia currently has trade agreements in place that allow it to have preferential access to about 1.5 billion
consumers in important markets.

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 PERU
It finds a slower level of growth to which it had been bringing but its exports to China and the USA maintains it
as a country with exports of raw material that these countries demand, when a breakdown of relations
between these 2 countries arises, it may be that Repotencie or multilateral support is required such as ULPE

Currently, there are 21 established trade agreements, 4 for entry into force and 7 in process of
Negociatión

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CHILE
It is a country with a stable growth, but as countries of the region we depend on the Chinese economy which
has a slowdown is projected a slight decline in the GDP of Chile but with great contributions to the Alliance

Chile has 26 trade agreements with 64 markets, representing 64.1% of the world's
population and 86.3% of global GDP.

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OUR
CURRENCY
WILL BE

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 Which countries should be
integrated in the medium
term?
Explain why economic and why
this medium-term decision is
made and not once
In the medium term, seven remaining Latin American
countries should be integrated into the ULPE, This
decision and because so far do not have the optimal
economic bases as the countries related above mind. But
this does not preclude the possibility of the same
medium-term achieving the necessary requirements.
The following are figures of the most important economic
indicators, These data correspond to data from the last
four years and a projection that is for the year
immediately following

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 For the case of Argentina this could be integrated in the
medium term to the ULPE This is because of the
ARGENTINA economic instability that has been presented in the last
four years, We can note that their growth indicators are
presented with variations that would be inadequate to
include in the ULPE in the first instance, Will stabilize the
economy and revalue its currency

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REPUBLICA DOMINICANA

◦ Although at this time the economy of the Dominican

Republic has been growing in recent years thanks to
the tourism and construction sector, but its economy still
depends on the American economy

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Because Bolivia depends on oil prices The fall that is
recorded in gas export revenues It affects public accounts
and generates a deficit increase. Bolivia needs to look for BOLIVIA
options to generate income different from the Petroleum

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 Nevertheless, Guatemala's challenges are numerous: social and political
instability, poor infrastructure, corruption, vulnerability to external shocks
(natural disasters and commodity prices), reliance on low value-added
industries and remittances, low fiscal revenues, and a range of social
issues that include rural poverty, inequalities, underemployment,
GUATEMALA informality, and ethnic divisions (COFACE). Other risk factors include a low
domestic savings rate, insufficient credit penetration, and governance
problems. (portal.santandertrade, 2019)

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◦ EL SALVADOR

◦ One of the factors that suggest having El Salvador in

the group of countries to integrate in the medium
term is that it presents one of the lowest growth rates
In Central America because of its weak fiscal policies
and lack of investment are issues to be improved.

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 ◦ In the case of Pana can be thought based on the historical
figures that this country should be a member of the ULPE in
PANAMA the first group But for our appreciation this would not be
detrimental to it as it is a country that presents in its
historical positive figures in comparison to many

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 Bearing in mind that the most
industrialized country in Latin
America and in turn, is one of
the strongest economies of
the same group of countries,
the Bank that manages the
Latin currency must remain in
References Brazil considering that the
currency is also in that
country. stronger in Latin
America with respect to the
US dollar and this would give
strength to the new Latin
currency.

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Bearing in mind that one of the most important
issues when making an economic unification is
the similarity of indicators, if you have to reach
an agreement in which before making the Latin
Union of Emerging Countries (ULPE according
to its acronym in Spanish ) countries will have
to standardize their indicators such as inflation,
power of their currency, GDP, among others

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It is necessary to make a
union of Latin countries to
have an opening in the
market and thus, to have a
balanced competition with
the European Union, the
United States and the Asian
market. The currency that
we will manage will be
called MICOL, referring to
its initials in Spanish, Latin
American Trade Exchange
Currency.

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