Brazil and Argentina to Announce New Currency

According to the Financial Times, Brazil and Argentina will this week announce groundwork for a common currency in what could potentially lead to the creation of the world’s second-largest currency bloc.

According to the publication, the two nations will meet this week to convince more Latin and  American nations to join.

Brazil already suggests that the currency will take the name ’Sur’ and could act as a booster to regional trade and reduce the reliance on the 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 said.

The conversations of a common currency between the two nations have gone on for a period now with Brazil’s Central Bank cautious on fully adopting it. This time though the change in leadership in Brazil which sees a leftwing leader run the country has made it easy for the idea to sail through.

An official announcement is expected during Brazilian president Luiz Inacio Lula da Silva’s visit to Argentina that starts on Sunday night.