Ecuador, Bolivia Call for South American Currency

Bill Faries

Dec. 9 (Bloomberg) -- The presidents of Ecuador and Bolivia called for the creation of a single South American currency as a step toward lessening dependence on international financial institutions and the U.S.

Ecuador's Rafael Correa and Bolivia's Evo Morales said a regional currency would help the nations of South America assert their financial independence. Correa and Morales spoke in Buenos Aires after helping inaugurate the Bank of the South, a development bank pushed for by Venezuelan President Hugo Chavez.

``There's no technical reason why we couldn't have our own regional currency tomorrow,'' Correa said at the presidential palace, where heads of state from Argentina, Brazil, Venezuela and Paraguay were also gathered.

Correa, Morales and Chavez criticize what they call U.S.- backed economic policies they say failed to eradicate poverty and expand their economies in the 1980s and 1990s. Correa and Chavez said South American countries should invest their central bank reserves in the continent and stop ``financing'' the U.S.

Republished from Bloomberg

1 comment:

tejasborn said...

I hope these countries have thought this out because while living in Europe and talking to my friends they did not like having one currency. The thing everyone said was that the prices on everything went up with the new currenct. But the pay stayed the same.

So the poor people from the poorer countries will struggle even more to make ends meet. Because the currency and prices will be determined by the richer countries.