The second-largest currency bloc in the world began taking shape in South America this week, and the world’s foremost economic minds are baffled.
Brazil’s and Argentina’s presidents confirmed their plan to create a common currency provisionally called the “sur” in a joint op-ed published in Argentinean newspaper Perfil last Saturday. Brazil’s newly inaugurated President Luiz Inácio Lula da Silva arrived in Buenos Aires Monday for a summit with his Argentinean counterpart President Alberto Fernández, where the two will discuss strengthening trade ties as well as plan the new currency bloc, which other Latin American countries are being invited to join.
