Brazilian government proposes common currency for South American countries

During the summit of South American countries hosted by Brazil, President Luiz Inácio Lula da Silva (PT) defended, on Tuesday, 30, the creation of a single currency to facilitate commercial transactions between the 12 countries of South America.

In line with his criticisms of the hegemony of the dollar in international financial transactions, Lula suggested the adoption of a common currency in the region at the inauguration of the meeting of South American heads of state, held in Brasilia.

The meeting aimed to promote advances in terms of continental integration and establish an ongoing dialogue between the presidents of the continent of South America.

During the event, Lula presented several proposals, including the idea of ​​creating a common currency for trade, with the aim of reducing dependence on foreign currencies outside the region.

Lula presents common currency for South American countries

During his recent trips to Japan and China, Lula openly expressed his concern with the predominance of the dollar as the most widely accepted currency internationally.

For the president of Brazil, the proposal to establish a common currency aims to strengthen the South American identity. According to the proposal, it does not make it possible to replace the currencies of each country for a common currency, explaining that the proposal would only follow a commercial line.

Rather, the aim would be to institute a common currency exclusively for import and export business transactions. The proposal for a common currency has been tolerated due to the economy of dollars and monetary policy pressures from important trading partners, such as Argentina, in regional trade.

This proposal was also presented to Argentina, when President Lula was in the country in January of this year. He spoke about adopting a common currency with Argentina, so that the subject that would be addressed at the meeting with the other presidents was no longer a novelty.

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