RT.com
22 Jan 2023, 23:43 GMT+10
Brazil and Argentina are reportedly set to start work on creating a currency union that would eventually involve other nations on the continent
Brazil and Argentina plan to create a common currency, the Financial Times reported on Sunday, citing officials. The plan will be discussed and officially announced at a summit in Buenos Aires this week, according to the report.
"There will be... a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks," Argentina's Economy Minister Sergio Massa told the news outlet.
According to Massa, other Latin American nations will be invited to join the common currency project. Brazil is proposing calling the new currency 'sur,' which translates as 'south'.
Massa noted that the creation of the 'sur' is likely to take years, pointing to the fact that it took Europe 35 years to create the euro.
"It would be a study of mechanisms for trade integration. I don't want to create any false expectations... it's the first step on a long road which Latin America must travel."
Other officials who spoke to the news outlet said the new currency is expected to boost regional trade and help cut the countries' reliance on the US dollar.
Brazil and Argentina have discussed the idea of a common currency for several years, but Brazil's central bank previously blocked efforts to get such an initiative off the ground, sources told the Financial Times.
The two countries boast the largest economies in South America. Brazil is a member of the BRICS group and has enjoyed relative economic stability in recent years, although analysts point to a number of headwinds that could dampen growth this year. Argentina, meanwhile, has been plagued by economic instability for decades. The country has defaulted on its debt several times, most recently in 2020, and has had to resort to capital controls to protect its currency. Inflation in the country is currently soaring and it has a roughly $40 billion debt to the IMF.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Chile Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Chile Sun.
More Information(Photo credit: Bill Streicher-Imagn Images) Reliever Alex Carrillo is set to be promoted from Syracuse by the Mets after not allowing...
Brasilia [Brazil], July 8 (ANI): Prime Minister Narendra Modi, who is on a State Visit to Brazil after participating in the BRICS Summit,...
Poor nations are paying more on interest to creditors than they invest in their people, the South African president has said South...
At the 17th BRICS Summit, leaders emphasized strengthening multilateralism, reforming global governance, and empowering the Global...
By Shaurya Dutt New Delhi [India], July 8 (ANI): After winning the gold medal at the World Boxing Cup Astana 2025, Indian boxer...
The dominance of a single state on the world stage has ended, Luis Arce told RT Countries around the globe should give up on the...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...
RIO DE JANEIRO, July 8 (Xinhua) -- China stands ready to deepen coordination and cooperation with the United Nations to jointly advocate...
Tehran [Iran], July 8 (ANI): Iranian President Masoud Pezeshkian has said that while dialogue could resolve Iran's differences with...
The US president reportedly pledged to send the Patriot interceptors after the Pentagon halted munition shipments to Ukraine US President...
New York [US], July 8 (ANI): Pakistan has informed the United Nations that it possesses credible evidence of growing collaboration...
Islamabad [Pakistan], July 8 (ANI): Afghan refugees in Pakistan have urged the US to resume the USRAP resettlement programme, noting...