Brazil and Argentina are planning to create a common currency.
Brazil and Argentina are taking a bold step towards greater economic integration by announcing plans to create a common currency, said President of Brazil Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez in a joint article.
“We have the intention of overcoming barriers to our exchange, simplifying and modernizing the rules and promoting the use of local currencies. We also decided to advance discussion of a common South American currency that can be used for financial and commercial transactions, reducing operational costs and our external vulnerability,” the statement said.
It is expected that the new currency, which Brazil proposes to call “sur” (south) will stimulate regional trade and reduce dependence on the US dollar.
The leaders of both countries have discussed the idea already in 2019, but met with pushback from Brazil’s central bank at the time.