Brazil and Argentina intend to announce the start of preparatory work in preparation for the overthrow of a unified currency that will help them reduce dependence on trade in intra-trade, before generalizing it in South America.
According to the Financial Times, the plan to launch the new common currency will be discussed at a summit in Buenos Aires this week.
The plan will focus on how the new currency, which Brazil is proposing to call "sur," meaning "south," could boost regional trade and reduce dependence on the US dollar.
"There will be ... a decision to start studying the necessary criteria for a common currency, including everything from financial matters to the size of the economy and the role of the two central banks," Economy Minister Sergio Massa told the newspaper.
Politicians from both countries had previously held discussions about the idea in 2019, but it was met with objection from the Brazilian Central Bank at the time.
The report stated that the initiative will be launched as a bilateral project at first, and that it will be expanded later to invite other countries from Latin America, adding that an official announcement is expected during Brazilian President Luiz Inacio Lula da Silva's visit to Argentina, which begins on Sunday evening.