Brazil and Argentina move towards a common currency

Brazil and Argentina have reportedly begun preparations to move to a common currency. According to the Financial Times (FT), Brazil and Argentina have begun preparations to move to a common currency. The report noted that the leaders of the two countries will make a statement this week regarding the start of preparations. The FT reported, citing officials, that Brazil has proposed the name "sur" (south) for its new currency and that the common currency will be discussed at a summit to be held in Buenos Aires this week. It was said that with the new common currency, the two countries aim to increase regional trade and reduce dependence on the US dollar. Argentine Finance Minister Sergio Massa told the Financial Times, "A decision will be taken to examine the necessary parameters, such as the financial issues and the role of central banks, to create a common currency." The report, which stated that the initiative, which initially started as a bilateral project, will later be expanded to invite other Latin American countries, stated that an official announcement is expected to be made during Brazilian President Luiz Inacio Lula da Silva's visit to Argentina, which begins on Sunday night. Brazil and Argentina first proposed creating a common currency in 2019. No progress was made after the Brazilian Central Bank opposed the proposal.