Brazil's President Lula has proposed the initiation of a Latin American currency.

 Brazil's President Lula has proposed the initiation of a Latin American currency.

Luiz Inacio Lula da Silva, Brazil's president, gestures as he speaks during the South America Summit at Itamaraty Palace in Brasilia, Brazil, on Tuesday, May 30, 2023.(Getty)

Brazil's President Luiz Inácio Lula da Silva has proposed the introduction of a Latin American currency. This proposal has sparked discussions in various regions of South America. Brazil has organized a grand summit involving the 12 countries of Latin America. It is there that President Lula da Silva presented a proposal for a new currency for trade throughout South America. Other countries have also expressed their support for this proposal. Lula stated that, instead of relying on foreign currencies in the field of commerce within South America, they could create their own currency. Instructions have been given to the banks of different countries on how this new currency can be created.

In the past decade, Latin American countries had been leaning towards the right-wing. However, now the tide has turned towards the left-wing. The summit in Brazil is being seen as a meeting of a left-wing alliance by international relations experts. They say that once upon a time, the Union of South American Nations (UNASUR) was quite powerful. Over time, it became weakened. Under Lula's leadership, it is being reconstructed.

The heads of state of 12 countries have participated in this summit, with the exception of Peru's head of state. He couldn't attend due to internal security issues in his country. The President of Venezuela has joined the summit. Brazil's former president, a left-wing politician, referred to the President of Venezuela as a leader on his own, without being part of any summit. He was not invited to any summit. Lula praised him on this day. Argentina's leader has also praised him. On the other hand, Colombia's leader has stated that the time has come to create a united Latin America. It is imperative to reach agreements among the nations.

Experts believe that if the left-wing bloc becomes powerful in Latin America under Lula's leadership, it will redefine the course of world politics.