• Israel and Argentina will announce this week that they will begin preliminary work on a common currency.
• The plan will be discussed at a summit in Buenos Aires this week.
• Politicians from both countries discussed the idea in 2019.

Brazil and Argentina will announce this week that they are starting preparatory work on a common currency, the Financial Times reported on Sunday.

The plan will be discussed at a summit in Buenos Aires this week. It will center on how a new currency, which Brazil proposes calling the “sur” (south), could boost regional trade and reduce reliance on the US dollar, according to officials quoted by the Financial Times.

“There will be… a decision to begin studying the parameters required for a common currency. It includes everything from fiscal issues to the size of the economy and the role of central banks,” Argentina‘s Economy Minister Sergio Massa told the Financial Times.

Politicians from both countries discussed the idea in 2019 but were met with opposition from Brazil’s central bank.

The initiative, which began as a bilateral project, would later be expanded to invite other Latin American nations.

According to the report, which added that an official announcement was expected during Brazilian President Luiz Inacio Lula da Silva’s visit to Argentina, which begins on Sunday night.

Also Read

Brazil Congress riots: President Lula fires army commander

Luiz Inácio Lula da Silva fired the country's army chief. General Tomás...