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People wait in front of a bank in Buenos Aires, Argentina (archive)
Photo: RONALDO SCHEMIDT / AFP
According to the Financial Times (FT), Brazil and Argentina will announce the start of preparatory work for a common currency in the next few days.
The newspaper reported on Sunday, citing government officials from the two South American countries.
The plan is to be discussed at a summit meeting in the Argentine capital, Buenos Aires, next week.
Discussions were being held on how the new currency could increase trade in the region and reduce dependence on the US dollar.
Brazil wants to call the new currency »sur« (south).
Similar to the euro in Europe
Argentina's economy minister, Sergio Massa, told the FT that a decision would be made to examine the necessary parameters for a common currency.
It will be about the size of the national economy, financial issues and the role of the central banks.
The idea was already discussed in both countries in 2019.
At that time, however, the Brazilian central bank had reservations.
According to the »Financial Times«, the currency area – similar to the euro in Europe – could later be expanded to include other Latin American countries.
Initially, however, only the Argentine peso and the Brazilian real would be included in the new currency.
Brazil's new President Luiz Inacio Lula da Silva will visit neighboring Argentina starting this Sunday.
jme/Reuters
