During a meeting with South American leaders in Brasilia on Tuesday, leftist Brazilian President Luiz Inacio Lula da Silva proposed the creation of a regional currency, CNN reported.

In Lula's proposal, the unified currency would apply to the Mercosur trading bloc, which includes Argentina, Brazil, Paraguay, and Uruguay. Since the bloc's establishment in 1991, there has been talk of creating a unified currency, the news website noted.

Instead of depending on extra-regional currencies, Lula said in his opening address, he suggested strengthening "the South American identity in monetary policy, through better compensation mechanisms and the creation of a shared unit of transaction for trading." 

The Brazilian President stressed that regional development banks, such as the Andean Development Corporation (CAF), the Bank of the South, and Brazil's development bank BNDES should boost their efforts to contribute to the region's social and economic growth.

It is noteworthy that this is not the first time that regional leaders have proposed the creation of a unified South American currency, CNN mentioned.

Lula's proposal comes as part of his de-dollarization campaign to end Western hegemony. In mid-April, the Brazilian President called from China on countries of the Global South to work toward ditching the USD in their international trade and resort to their own currencies instead.

Earlier, Lula underlined that it is time for a united South America after long years of division, calling for economic, cultural, and social integration between its countries.

Read more: De-dollarization: Slowly but surely