Brazil and Argentina are working on developing 'Sur' as a common currency with an aim to see it becoming the second-largest global currency bloc behind the Euro
At a joint press conference with Fernández, Lula suggested that the Sur would be set up through both nation's central banks - with the aim for Argentina and Brazil to strengthen their "commercial and financial relations.”
The notion of a common currency has been raised before, as both nations discussed the idea of a shared currency called the '' in the late 1980s, which never materialised and was also floated during the previous government's Mauricio Macri in Argentina and Jair Bolsonaro. Lula told journalists on Monday that both nations "already had an experience of doing business in our currencies. If I'm not mistaken, it was in 2008, when we established that Argentines could pay in their currency and Brazilians in theirs" and described it as an "optional" measure that never took hold.
Lula was an influential figure during the "pink tide" era as many Latin American countries pivoted to the left and amid a new wave of regional leftist leaders from Argentina, Bolivia, Chile, Colombia, Honduras, Mexico, Peru and Venezuela - is expected to raise the issue of a common currency at the Community of Latin American and Caribbean States Summit on Tuesday.
The idea of the Sur would be for other nations to "gradually" join without having to eliminate their national currencies, according to financial news-outletHowever, both countries face stark economic realities - Argentina's inflation is close to 100 percent while Brazil's is at 5.8 percent as experts reacted to the proposal largely with scepticism.
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