Brazil’s Lula proposes creating Latin American currency to ‘be freed of US dollar’ dependency

Brazil’s left-wing leader Lula da Silva says if he wins the 2022 presidential elections, “we are going to create a currency in Latin America,” called the Sur (“South”), to combat “the dependency on the dollar”

 

by Benjamin Norton 

Part 2 - Hugo Chávez’s attempt to create a pan-Latin America currency, the Sucre

Lula’s proposal for the Sur is certainly not the first time progressive politicians in Latin America have tried to create a common currency. This has long been a dream of left-wing leaders in the region.

Venezuela’s revolutionary former president Hugo Chávez developed an international currency as part of the Bolivarian Alliance (ALBA), an economic coalition of left-wing governments in Latin America and the Caribbean.

This currency was called the Sucre, and was adopted in 2009 by Venezuela, Nicaragua, Cuba, Bolivia, and Ecuador.

Sucre was an acronym for “Unified System for Regional Compensation,” but also a reference to Antonio José de Sucre, who helped lead the South American independence struggle against Spanish colonialism, alongside Simón Bolívar.

Ecuador’s government, under leftist President Rafael Correa, who has a Ph.D. in economics, was the main adopter of the Sucre.

At its peak in 2012, the Sucre was used for more than $1 billion in bilateral annual trade in the region.

But the currency fell out of use by 2016, following Chávez’s death in 2013, a massive drop in commodity prices in 2014, the imposition of US sanctions on Venezuela in 2015, and violent coup attempts against Chávez’s successor Nicolás Maduro.

Ecuador’s subsequent right-wing President Lenín Moreno, with US backing, later removed his country from the ALBA, dealing a huge blow to the Sucre and dreams of regional integration.

Source, links:

https://multipolarista.com/2022/05/04/brazil-lula-latin-america-currency-us-dollar/

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