Brazil and Argentina discuss common currency for financial, commercial transactions that avoiding using the US dollar
By Belle Carter // Jan 25, 2023

The leaders of Brazil and Argentina have recently announced that talks toward a common currency for financial and commercial transactions to improve economic integration are advancing.

Brazilian President Luiz Inacio Lula da Silva and Argentinian President Alberto Fernandez shared details about the common currency talks in a jointly-written article. The piece published in the website of the tabloid Perfil explained that a shared currency could reduce "external vulnerabilities."

"We intend to overcome the barriers to our exchanges, simplify and modernize the rules and encourage the use of local currencies," the two presidents noted. "We also decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, reducing cost operations and our external vulnerability."

The article noted that the plan will focus on how a new currency – which Brazil proposes naming as "sur" or south in English – could boost regional trade and reduce reliance on the U.S. dollar.

Fernandez and Lula also emphasized strengthening the Mercosur trade bloc – composed of Paraguay, Uruguay, Brazil and Argentina.

"Together with our partners, we want Mercosur to constitute a platform for our effective integration into the world, through the joint negotiation of balanced trade agreements that respond to our strategic development objectives."

Argentinian Economic Minister Sergio Massa said Brasilia and Buenos Aries will invite other nations in Latin America to join the sur. He claimed, however, that he didn't want to create any "false expectations" and that the talks between the countries are "the first step on a long road which Latin America must travel."

Brazilian Finance Minister Fernando Haddad first raised the idea of a common currency in a 2022 article he co-wrote with his executive secretary, economist Gabriel Galipolo. Lula later mentioned the idea of the sur during his presidential campaign. (Related: BRICS member nations are creating new reserve currency to challenge the dollar, Andy Schectman tells Mike Adams.)

Proposed common currency derided by critics

Lula explained that the sur would initially be limited to Argentina and Brazil for trade and transactions. It could then be later adopted by other Mercosur members, he added.

But according to a report by the Associated Press, the proposed common currency did not sit well with some analysts. They pointed out that neither Brasilia nor Buenos Aires "is positioned to tackle such a complicated undertaking or instill confidence in the idea with global markets."

Economists were quick to question the logic of the plan between the South American neighbors as economic conditions are deteriorating in Argentina, where nearly four in 10 people live in poverty. They also mentioned that even though Brazil is in an objectively better place economically, the country is "hardly a beacon of success."

Moreover, the analysts pointed to multiple foreign exchange rates in both countries that include an illegal one employed in backrooms by money-changers. The practice has been so entrenched that this so-called "blue dollar" rate is published daily in newspapers.

"Neither country has the initial conditions to make this succeed and attract others," tweeted Mohamed A. El-Erian, former CEO of premier fixed-income investment managers Pimco. "The best this initiative can hope for is that talk creates some political cover for much-needed economic reforms."

Brendan McKenna, an emerging-markets economist and foreign-exchange strategist at Wells Fargo, pointed out that the proposal is "a bad idea." He added that the disparity between the two nations' economic conditions leaves it no chance of materializing. has more stories about currencies around the world.

Watch this Russia Today report that discusses global cooperation toward de-dollarization.

This video is from the dr Meno Peace Terrorist channel on

More related stories:

Putin says BRICS countries are establishing new global reserve currency to replace U.S. dollar.

Saudis consider using yuan over dollar in oil sales; move could signal collapse of petrodollar and the American economy.

Chinese state-run media urges "de-dollarization," says Federal Reserve engaging in "financial looting" of the world.

Sources include:

Take Action:
Support NewsTarget by linking to this article from your website.
Permalink to this article:
Embed article link:
Reprinting this article:
Non-commercial use is permitted with credit to (including a clickable link).
Please contact us for more information.
Free Email Alerts
Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more. © 2022 All Rights Reserved. All content posted on this site is commentary or opinion and is protected under Free Speech. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published on this site. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

This site uses cookies
News Target uses cookies to improve your experience on our site. By using this site, you agree to our privacy policy.
Learn More
Get 100% real, uncensored news delivered straight to your inbox
You can unsubscribe at any time. Your email privacy is completely protected.