(Reuters) – Brazil and Argentina will announce this week that they’re beginning preparatory work on a typical forex, the Monetary Occasions reported on Sunday.

The plan, set to be mentioned at a summit in Buenos Aires this week, will concentrate on how a brand new forex which Brazil suggests calling the “sur” (south) might increase regional commerce and scale back reliance on the U.S. greenback, FT reported citing officers.

“There can be . . . a choice to start out learning the parameters wanted for a typical forex, which incorporates all the pieces from fiscal points to the scale of the financial system and the function of central banks,” Argentina’s financial system minister Sergio Massa instructed the Monetary Occasions.

Politicians from each nations have mentioned the concept already in 2019, however met with pushback from Brazil’s central financial institution on the time.

Initially beginning as a bilateral undertaking, the initiative would later be prolonged to ask different Latin American nations, the report stated, including that an official announcement was anticipated throughout Brazilian President Luiz Inacio Lula da Silva’s go to to Argentina that begins on Sunday evening.