The governments of Argentina and Brazil said they are examining a common currency earlier this month, but several observers have expressed scepticism about the idea.
Some cast doubt on whether the project aimed to create a monetary union or a more limited mechanism to support trade transactions. Several observers questioned whether Brazil and Argentina were a natural currency area.
They also noted that past governments have frequently discussed a common currency in the region, but have failed to create one. It is not clear whether the latest proposals will have any more success.
In a joint statement on January 22, the Brazilian and Argentine presidents committed to “advancing discussions about a common South American currency that can be used both for financial and commercial transactions”.
Brazilian president Luis Inácio Lula da Silva said: “I believe [the currency] is necessary because what happens is that…
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