Brazil and Argentina to announce common currency – FT

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Brazil and Argentina to announce common currency, – FT

Photo: ft.com< /p>

Brazil and Argentina this week may announce the start of work on the creation of a common currency. The Financial Times  reported, citing officials familiar with the matter.

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

< em>“There will be… a decision to start studying the parameters needed for a single currency,” Argentine Economy Minister Sergio Massa told the FT.

According to him, in the first stage, countries will learn the mechanisms trade integration. Massa added that work on the project would take many years. He recalled that it took the EU 35 years to create and launch the euro.

According to the FT, if new currency throughout South America, it will account for 5% of global GDP. The euro, which is the largest monetary union in the world, accounts for almost 14% of global GDP, the publication notes. 

Except for the EU, a common currency is used by some African countries (African franc) and Caribbean countries (East Ibian dollar), but they account for a negligible share of world GDP.

BAGNET recalls that from January 1, 2023 Croatia switched to the euro and joined the Schengen area.

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Prepared by: Sergey Daga 

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