Next week, Brazil and Argentina will announce the beginning of the creation of a common currency, reported financial times.
It is expected that this will happen during the visit of Brazilian President Luiz Inacio Lula da Silva to Argentina.
According to the newspapers, the parties will first study how the new currency can stimulate regional trade and reduce dependence on the dollar.
The head of the Ministry of Economy of Argentina, Sergio Massa, announced to the FT a decision to start studying the parameters necessary for a single currency.
Later, other Latin American countries will be offered to join the currency zone. They want to name the new monetary unit in Brazil sur (South – Approx. ed.). Now the Brazilian currency is called the real, the Argentine peso.
Latin America now accounts for five percent of the world’s GDP. If a single currency area is created, it will become the world’s second largest economy after the European one, which accounts for 14%.
The need to switch to settlements in national currencies has been repeatedly stated by Russian President Vladimir Putin. In October, at a meeting of the Valdai International Discussion Club, the Russian president said that the transition to national currencies would gain momentum, such calculations would dominate the world.
In July, Foreign Minister Sergei Lavrov pointed to the need to create a financial system immune to the influence of Western countries.
