• Brazil and Argentina are looking to begin work on the issuance of a common currency.
• Representatives of both countries will be discussing this subject at the CELAC summit in Buenos Aires on Jan. 24.
• The project of a common currency for Latam has been gaining some steam during the last year.
Brazil and Argentina are looking to take a major step in the economic integration of Latin America, with the two countries announcing their intention to begin work on the issuance of a common currency. The announcement comes from Sergio Massa, minister of the economy of Argentina, who stated that the two countries will be inviting other nations in the area to join this economic integration project in the future.
The intention is that the currency, called „sur,“ Spanish for south, will first be studied and designed to be a bilateral endeavor. Representatives of both countries will be discussing this subject at the CELAC summit in Buenos Aires on Jan. 24 and will be discussing the first steps to issue the coin. However, Massa warned that such a project would take time to come to fruition, mentioning the Euro as an example, which was in the making for 35 years before being finally adopted in the European Union.
The project of a common currency for Latam has been gaining some steam during the last year, with President of Brazil Luis Alvaro de Oliveira and President of Argentina Mauricio Macri both expressing support for the idea. Massa has now further clarified the situation, stating that this is “Argentina and Brazil inviting the rest of the region”. He explained that the discussion would revolve around initial considerations for the issuance of the coin, including everything from fiscal issues to the size of the economy and the role of central banks.
It is clear that the project is in its earliest stages and that much more work needs to be done in order to bring it to fruition. However, the two countries have shown their commitment to the project and are hopeful that other nations in the area will also become involved. The project has the potential to bring great economic benefits to Latam, but only time will tell if it can be brought to a successful conclusion.