To reduce dependence on dollar: Brazil and Argentina create joint currency

Brazil and Argentina next week may announce the launch of work to create a joint currency, the Financial Times said with reference to officials familiar with the question.

The new currency is proposed to be called “SUR” (“South” from Spanish), it will be aimed at reducing the dependence of the economies of the two countries on the dollar. According to FT, other Latin American countries will be invited to join the project.

According to the Minister of Economics, Argentina Sergio Mass, at the first stage of the country will study the mechanisms of trade integration. He added that work on the project would take many years, and recalled that it took 35 years to create and launch the euro of the European Union.

According to FT, officially the start of work on creating a common currency will be announced next week during the visit of President Brazil Luis Inasiu Lula da Silva to Argentina.

Earlier, Argentina and Brazil have already discussed the creation of a common currency, but the Central Bank of Brazil opposed. FT notes that after the Left Government came to power and Silva, the process of discussing a single currency can go faster.