Argentina and Brazil want to create a common currency called the sur. This move would create the world’s largest currency union after the 20-nation eurozone in Europe.
Latin America accounts for 5% of the world’s gross domestic product, the EU for 13%. Little wonder then, that the project dominated business headlines in Europe over the weekend. In South America, meanwhile, the announcement barely caused a stir.
Since the first integration projects began 50 years ago, politicians in both countries have dreamed of a common currency. But thus far, attempts have produced little more than material for academic papers.
Two vastly different neighbors
Brazilian-Argentine economist Fabio Giambiagi has criticized the renewed discussion as a “waste of time.” The governments’ failure to…