Common Currency

What happens when the biggest economies in South America agree to create a common currency and they invite the rest of Latin America to join? They create the second-largest currency bloc in the world, making up 5 percent of global gross domestic product.

The Financial Times reported on January 21 that Brazil and Argentina will announce the creation of a common currency this week. Both sides are working to downplay expectations, but it is a highly ambitious project. To start off, the proposed “sur” currency will run parallel to the Brazilian real and the Argentinean peso. But the ultimate goal will be “inviting the rest of the region” to join the bloc, according to Argentine Economy Minister Sergio Massa.

Read more at “Brazil and Argentina Are Launching a Common Currency”