The Financial Times reported on Sunday that Brazil and Argentina – both members of the G20 – plan to announce this week the launch of preparations for adopting a single currency.
The newspaper quoted officials as saying that the plan, which will be discussed at a summit in Buenos Aires this week, will focus on how the new currency that Brazil is proposing to call “sur” (the south) can boost regional trade and reduce dependence on the US dollar.
“There will be … a decision to start studying the necessary criteria for a common currency, including everything from financial matters to The size of the economy and the role of the two central banks“.
Politicians from both countries previously held discussions about the idea in 2019, but it was met with objection from the Brazilian Central Bank at the time, according to Reuters.
The report stated that the initiative will be launched as a bilateral project at first, and that it will be expanded later to invite other countries from Latin America, adding that an official announcement is expected during Brazilian President Luiz Inacio Lula da Silva’s visit to Argentina, which begins on Sunday evening.
