Context

In 1987, the presidents of Brazil and Argentina announced a protocol that would create a common currency called the Gaucho. Though it never came to fruition, it began decades-long debates in the southern cone region about whether and how to create a currency union similar to the eurozone. In early 2023, the current presidents of Brazil and Argentina attempted to rebrand the Gaucho initiative by creating a new currency called “sur” that would be common to members of the Mercosur trade bloc, made up of Brazil, Argentina, Uruguay and Paraguay.