Venezuela voices support for regional currency initiative

By Al Mayadeen English
Source: Agencies
24 Jan 09:00
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Venezuelan President Nicolas Maduro voices support to the initiative for an independent Latin American and Caribbean currency.

Venezuela's President Nicolas Maduro gives a state of the nation address at the National Assembly, in Caracas, Venezuela January 12, 2023 (Reuters).

The leaders of Brazil and Argentina declared, that this week they would begin preliminary work on a common currency, an idea to which Venezuelan President Nicolas Maduro expressed support.

During a Caracas march against unilateral sanctions, Maduro said that "Venezuela is ready and we support the initiative to create a Latin American and Caribbean currency."

Furthermore, Maduro emphasized, "Independence, unity and liberation for Latin America and the Caribbean!"

This comes at a time when Venezuela has shown a slowdown in inflation from the previous year. In 2022, Venezuelan inflation hit 234%, whereas in 2021 inflation was more than 686% according to the Venezuelan Central Bank.

Brazil, Argentina set to begin preparations for common currency: FT

The Financial Times reported that Brazil and Argentina will declare, 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 amid previous 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.