Brazil and Argentina with a single currency? They don’t want the US dollar

The information was provided by the Financial Times. The new currency is to be called “Sur” (south).

Common Currency of Brazil and Argentina?

The authorities of Brazil and Argentina were already talking about the possibility of establishing a common currency in 2019, but the Central Bank of Brazil opposed and the work stalled. Now Buenos Aires and Brasilia are returning to this concept.

In the coming week, representatives of both countries are to officially announce the initiation of preparatory work on Sur. The originators indicate that the project is aimed at reviving regional trade and reducing dependence on the American dollar.

“This is the first step on a long road that Latin America must take,” Argentina’s Economy Minister Sergio Massa told the Financial Times.

Currency union in South America?

In the longer term, other Latin American countries would join the initiative. The official announcement of the project is to take place during the visit president of Brazil Luiza Luli da Silvy in Argentina on the occasion of the Summit of the Community of Latin American and Caribbean States beginning on Monday in Buenos Aires.

before the work is started, central bank representatives are to comment on the feasibility of implementing the proposed solutions.

According to estimates in the Financial Times, a monetary union covering all of Latin America would generate a total of 5% of the world’s GDP. global GDP.

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