Buenos Aires, Jan. 22 (BNA): Brazil and Argentina will announce this week the start of preparatory work on the single currency, the Financial Times reported Sunday.
According to Reuters, the plan, set to be discussed at a summit in Buenos Aires this week, will focus on how a new currency that Brazil proposes to call “sur” (the south) could boost regional trade and reduce dependence on the US dollar, the Financial Times reported, citing officials.
“There will be … a decision to start studying the criteria required for a common currency, which include everything from financial issues to the size of the economy and the role of central banks,” Argentine Economy Minister Sergio Massa told the Financial Times.
Politicians from both countries already discussed the idea in 2019, but faced opposition from Brazil’s central bank at the time.
The initiative, which initially started as a bilateral project, will be extended later to invite other Latin American countries, the report said, adding that an official announcement is expected during Brazilian President Luiz Inacio Lula da Silva’s visit to Argentina that begins Sunday evening.
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