Brazil and Argentina will soon announce that they have begun preparatory work to create a single currency. Brazil proposes to name its new currency “sur” (south). Writer Financial Times newspaper.
According to the news of the newspaper, official statements on this issue are expected during the visit of Brazilian President Luiz Inácio Lula da Silva to Argentina. The visit will begin on Sunday evening.
The article states that the plan, which will be discussed at the Buenos Aires summit this week, will focus on how the new currency can boost regional trade and reduce countries’ dependence on the US dollar.
“The decision will be made to start exploring the parameters needed for a single currency, including everything from financial issues to the size of the economy and the role of central banks,” Argentina’s Economy Minister Sergio Massa told the Financial Times.
Politicians in Brazil and Argentina discussed the idea of creating a single currency in 2019. However, the Central Bank of Brazil later did not support this initiative.
Initially, this venture started as a bilateral project between Brazil and Argentina.
“Later, the initiative could be expanded to other Latin American countries,” the article says.
Formerly Brazil and Uruguay refused From payments in US dollars.
Source: Gazeta
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