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The Financial Times reported that Brazil and Argentina will declare this week that they would begin preliminary work on a common currency.

The plan, which will be debated at a conference in Buenos Aires this week, will center on how a new currency, which Brazil proposes naming the "sur" (south), may improve regional trade and lessen dependency on the US dollar, according to officials quoted by the Financial Times.

“There will be . . . a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks,” Argentina’s Economy Minister Sergio Massa said as quoted by the Financial Times.

The common currency idea is not new, as politicians from both countries first considered the concept in 2019; however, no work was done in this regard being faced with opposition from Brazil's Central Bank.

The proposal, which began as a bilateral effort, would eventually be expanded to invite other Latin American nations, according to the newspaper, which added that an official announcement was expected during Brazilian President Luiz Inacio Lula da Silva's visit to Argentina, which begins on Sunday night.

According to Brazil's Ministry of Foreign Affairs, the meeting between the two presidents is expected to include discussions related to trade, science, technology, and defense.

Since his electoral victory in October, Lula has embarked on a journey to highlight that "Brazil is back".