Brazil and Argentina will begin preparatory work on a common currency next week, reports the Financial Times. The plan will be discussed at a summit in Buenos Aires this week.
The common currency – which Brazil calls the sur – could prove crucial in boosting regional trade and reducing reliance on the US dollar. “There will be a decision this week that will allow us to explore the possibilities of a common currency,” said Argentine Economy Minister Sergio Massa. “That means we have to look at fiscal issues, the size of economies and the role of the central bank.”
Not thrilled
In 2019, politicians from both countries already discussed the idea, but then faced criticism from the Brazilian central bank, which was less than positive.
Although the plan began as a bilateral project, the initiative could be extended to other Latin American countries at a later stage. Brazilian President Lula is expected to talk about this tonight.
Source: BNR
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