It will be a digital currency, issued by a central bank in South America, “with seed capital by member states, proportional to their stakes in regional trade,” Gallipolo and Haddad explain.
Economists baptize the currency as SUR and assert that “They can be used for trade and financial flows between countries in the region.” It will be capitalized “from the international reserves of countries and/or with a tax on exports from countries outside the region.”
In addition, member states will “receive the initial endowment of the SUR, according to agreed clear rules, and will be free to adopt them at the national level or maintain their own currencies. The exchange rates between the national currencies and the SUR will be floating.”
Brazil’s Economy Minister, Paulo Guedes, had already backtracked on 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.” , in which he urged to follow the lead of the European Union.
“Argentina practically lost its currency due to inflation of 50%, and in the case of hyperinflation in Venezuela, Ecuador was forced to switch to the dollar. In the future, the path of monetary integration can be followed,” he said at the time.