Brazil and Argentina are starting preparations for a common currency, according to the Financial Times.
The plan, set to be discussed at a summit in Buenos Aires this week, will focus on how a new currency which Brazil suggests calling the "sur" (south) could boost regional trade and reduce reliance on the U.S. dollar.
“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 Financial Times. Initially starting as a bilateral project, the initiative would later be extended to invite other Latin American nations. An official announcement is expected during Brazilian President Luiz Inacio Lula da Silva’s visit to Argentina that starts on Sunday night.
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