Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

To Reduce Dependence on US Dollar, Brazil, and Argentina Consider Creating Single Currency

Mon 23 Jan 2023 | 12:07 PM
Ahmed Moamar

Brazil and Argentina plan to announce this week the launch of preparations for adopting a single currency, the Financial Times reports.

The newspaper quoted Brazilian and Argentinean officials as saying that the plan, which will be discussed at a summit in Buenos Aires this week, will focus on how the new currency, which Brazil proposes to call the "South Wall", can 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," Brazilian 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 Financial Times report stated that the initiative will be launched as a bilateral project at first, to 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 began yesterday evening (Sunday) .