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

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

“There shall be . . . a choice to begin learning the parameters wanted for a standard forex, which incorporates all the pieces from fiscal points to the dimensions of the financial system and the function of central banks,” Argentina’s financial system minister Sergio Massa instructed the Monetary Instances.

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

Initially beginning as a bilateral challenge, 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 night time.