It would be a digital currency, issued by a South American Central Bank, “with an initial capitalization made by the member countries, proportional to their respective shares in regional trade,” explains the Galípolo and Haddad note.
The economists baptized the currency as SUR and assured that “could be used for trade and financial flows between the countries of the region”. Its capitalization “would be done with the international reserves of the countries and/or with a tax on exports from countries outside the region.”
In addition, member countries “would receive an initial endowment from SUR, according to clear agreed rules, and would be free to adopt it nationally or maintain their currencies. Exchange rates between national currencies and SUR would be floating.”
The Brazilian Economy Minister, Paulo Guedes, had already slipped a similar idea in August 2021 when he stated that “in 15 or 20 years there will only be five or six major currencies in the world, including the euro, the Chinese yuan and the US dollar”, for which he urged to follow the example of the European Union.
“Argentina practically lost its currency due to inflation of 50%, in Venezuela hyperinflation, Ecuador was forced to change to the dollar. In the future, the path of monetary integration could be followed,” he said at the time.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
