Reinstate the coalition, now defunct USAN Proposals to profile future monetary unions among the countries of the organization, in South America. The proposal, made by several former presidents of Latin American countries, reinforces the need for regional integration to overcome common problems in the region, including poverty.
USAN restart proposal includes monetary union
Recent political changes in Colombia and Brazil have resulted in a series of processes seeking to integrate South American countries into new organizations. rice field. On November 14, several former presidents of the region prepared a proposal for the resumption of the USAN, a Latin American-based integrated organization launched in 2008 and made up of 12 countries, including Brazil and Argentina. rice field. Among them are Michelle Bachelet, Rafael Correa, Jose Mujica, Dilma Rousseff and Ernesto Samper.
This document emphasizes the need for closer regional integration to overcome the obstacles that current world organizations present to the countries of the region and to develop the capacities of the countries as a bloc.
The proposal was directed as a letter to Venezuelan President Nicolás Maduro and explicitly mentioned monetary union as one of the priorities of the restructured organization. ing. The letter calls for:
move towards a commercial exchange funding system, with a view to future currency union, if macroeconomic conditions permit. Establishment of a working group.
Other important issues include establishing a common approach to external debt and international finance for middle-income countries, cooperating between companies in the region, such as joint public procurement and regulatory harmonization. This includes the implementation of facilitating measures.
Potential Common Currency Support
It highlights the potential benefits that such developments it has announced could bring to Latin America. Brazil’s president-elect Lula da Silva was one of the first to pitch the idea at a campaign rally.
In May, Lula said:
We intend to restore relations with Latin America. By God’s will, we will create a Latin American currency.
Lula also stated that the purpose of the currency’s creation was to move away from reliance on the US dollar, which has caused high levels of inflation in countries with economic turmoil in the region. Argentina is one example, with 14 different dollar exchange rates currently set to contain the number of flights and inflation in the capital, which is expected to reach over 100% this year.
The government of Colombian President Gustavo Petro has also expressed support for the initiative since its inception, when Minister Roy Barreras called for the establishment of a common currency.
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