Brazil and Argentina Are Creating A Common Currency

 

Brazil and Argentina are developing a new common currency. These preparations could mean a major economic transformation is happening in Latin America. The major objective is to increase  regional trade. It has been speculated that Brazil  would one day become an important economic power. Being a member of BRICS demonstrates a rise to international standing. The major obstacle to this was objection from Brazil's central bank. The intention also could be to extend the use of the new currency to other South American nations. The name that has been proposed is the sur. The situation  is different from 2019. South American countries are seeking economic stability in  a world torn by geopolitical confrontation. Two leftist governments are in power, which makes collaboration easier. President Alberto Fernandez would be classified  centre-left and Peronist. The election of President Lula Da Silva in Brazil makes bilateral economic ties more attainable. Argentina needs new solutions to deal with national debt and the damage caused by past recessions. Seeking aid from other Latin American countries would be a better solution. The International Monetary Fund has not been helpful in getting the South American country on a path to economic recovery. IMF programs have been active since 1991 and did little to reduce the economic crisis in 2001. Argentina continues debt negotiation to reduce suffering on the general public. The new currency must be backed by a commodity of value. Only then will  Latin America gain economic independence. Brazil and Argentina must prove to other nations of South America that the new currency is an important financial investment.