It is a recurrent issue, an old dream that is coming back in the news in an unexpected form. The Bolivarian revolution Hugo Chavez has made his banner for several years could take an important step in the coming months … creating a single currency. The economic crisis, a weak dollar, the political context that brought left wing majorities to power… All this has given a big boost to the “sucre” project.
The “sucre” is a single currency adopted by eight member states of the Bolivarian Alternative for the Americas (Alba): Venezuela, Cuba, Bolivia, Nicaragua, Antigua and Barbuda, Honduras, Saint Vincent and the Grenadines and Dominica (joined this year by Ecuador). Earlier this week, they announced they would begin to use that currency for their foreign trade operations in 2010. An accelerated schedule as a response to the weakness of dollar, but also in order to gain from it. In other words, an economical solution and a real political opportunity.
But the purpose of this project is to establish a single currency just like the euro into the European Union. Utopia could become reality sooner than expected and give birth to an important economical area. Venezuelan oil, the prospects for the exploitation of lithium in Bolivia, gas resources (a new field has been discovered in Venezuela today) … The Alba has the means to weigh, especially with allies like Russia and China, who are already investing heavily in the region. Politically, critics will not fail to note that this new deal could strengthen the authoritarian regimes, although some which appeared in its death thrones (eg Cuba).
The countries of the Alliance are meeting in Cochabamba, Bolivia, could announce new measures and move up a gear. To be continued.
Barrio latino 