Latin American bloc agrees on joint currency against US dollar / PHOTO

Latin American leaders gathered in Bolivia for the 7th Summit of the Bolivarian Alternative for the Americas.

Latin American bloc agrees on joint currency against US dollar / PHOTO


Latin American leaders agreed here on the creation of a regional currency, the Sucre, aimed at scaling back the use of the US dollar during the 7th Summit of the Bolivarian Alternative for the Americas (ALBA).

Nine countries of ALBA met in Bolivia where they vowed to press ahead with the Single System of Regional Compensation (SUCRE), a new currency for intra-regional trade, to replace the US dollar.



Chavez, Ecuadorian President Rafael Correa, Cuban Vice President Jose Ramon Machado as well as other leaders of ALBA nations attended the meeting.

"The document is approved," said Bolivia's President Evo Morales, who is hosting the summit.



The idea of a regional monetary zone with SUCRE as its currency unit was proposed by Venezuelan President Hugo Chavez in November 2008 in a bid to reduce the dependence on the U.S. dollar in the world economy.

The currency, which was backed in April this year, is named after Jose Antonio de Sucre, who fought for independence from Spain alongside Venezuelan hero Simon Bolivar in the early 19th century.



That move echoes the European Union's introduction of the euro precursor, the ECU, an account unit designed to tie down stable exchange rates between member states before the national currencies were scraped.

ALBA's member states are Venezuela, Bolivia, Cuba, Ecuador, Nicaragua, Honduras, Dominica, Saint Vincent and Antigua and Barbuda.

Call for Settlement of Investment Disputes

The bloc also called for the replacement of the World Bank's International Centre for Settlement of Investment Disputes, which arbitrates international contract disputes and has probed a slew of disputes involving ALBA members and western energy firms.



Most ALBA members have already withdrawn from the organization, with Ecuador announcing last July that it would pull out of the group.

The summit is also expected to issue a declaration on strengthening measures against the de facto government of Honduras.



The ALBA was created in December 2004 under the initiative of Venezuela and Cuba to counter the U.S.-led Free Trade Area of the Americas.

Agencies

Last Mod: 17 Ekim 2009, 12:53
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