‘We Don’t Have to Depend on the Dollar’: Brazilian Left Wants South American Euro

Tall Timbers

Imperfect but forgiven
Staff member
Brazilian ex-President Luiz Inácio Lula da Silva, a socialist running for president again this year after his judicial appointees overturned a 25-year prison sentence for corruption, used a campaign rally this weekend to promote the creation of a pan-American currency.

The leftist outlet Telesur quoted Lula on Monday as describing the continental currency as a way to liberate Latin America from reliance on the U.S. dollar and a way of improving Brazil’s relations with its neighbors. He appeared to be promoting a proposal that surfaced in early April in the pages of the far-left Folha de Sao Paulo newspaper, proposed by fellow Workers’ Party (PT) presidential candidate Fernando Haddad, for a currency called the “Sur” [“South”] functioning throughout South America the way that the Euro works on the European continent.

The Folha article argued that Russia’s vulnerability to sanctions in the face of its full-scale invasion of Ukraine is evidence that South America needs its own united currency to protest itself from Western sanctions on human rights grounds.

Lula enjoyed months as the frontrunner in October’s Brazilian presidential election despite his corruption conviction but has seen his lead decline dramatically over the past week against incumbent conservative President Jair Bolsonaro. This weekend was particularly embarrassing for Lula as his rally on Sunday, a Marxist holiday known as “May Day” or “International Workers’ Day,” attracted a meager crowd while conservatives organized massive pro-Bolsonaro, free speech rallies in the country’s largest cities.


I've been wonder how the fracturing of a single currency (the US dollar) for international transactions was going to help lead to the OWG. In this article I'm beginning to see how.