Henig: IMO: Going away from the Dollar is getting contagious, ain’t it? Nothing is being done in a vacuum. It’s all related.

 Brazil and Argentina are preparing for a single monetary currency

2023-01-22 09:41

Shafaq News/ The Financial Times reported, on Sunday, that Brazil and Argentina intend to announce this week the launch of preparations for adopting a unified 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, which Brazil proposes to call the (sur) “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,” Economy Minister Sergio Massa told the newspaper.

Politicians from both countries had already held discussions about the idea in 2019, but it was met with objection from the Brazilian Central Bank at the time.

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.  LINK

Argentine and Brazilian currency