Lula announced at a rally promoted by the Socialism and Liberty Party (PSL) to celebrate support for her candidacy: “God willing, we will create a currency in Latin America, because we do not have to rely on dollars.”
Sources close to Sao Paulo’s PT candidate Fernando Haddad and former president of the Banco Fatter, Gabriel Gallipolo Lula, could call it “south.”
In a recent article, they argued about the need to salvage Latin American “financial sovereignty.” Currencies with a history of devaluation have dominated the region due to the government’s continued failure to manage national accounts and assets.
Lula liked the idea. He has fitted like a glove to the role he has carefully designed to play this election season – the unjust old popular leader seeking liberation in the polls.
The image of Lullar raising the “tune” flag acquires a frame similar to the Grito the Independence scene in PT’s imagination, and in Hispanic America, in the portrait of the liberator Simon Bolivar.
The proposal restores one of the Left’s most cherished dreams during the Cold War – independence from US imperialism, whose power is expressed in dollars, international currencies.
The notion of the “south”, a single Latin currency, is politically advantageous for a PT candidate who, due to one of those strategies in history, cannot isolate himself in his criticism of his immediate opponent in the election, Zaire Bolsonaro. Vladimir Putin’s war in Ukraine …
Putin invaded other countries out of temptation to retake the former Russian Empire, but both candidates chose to hold the United States, the European Union, and NATO allies accountable.
Wrapping up the “tune” flag, Lula has had the opportunity to revive the notion of sovereignty in an election speech with a regional response, reviving criticism of post-World War II imperialism.
The “South” proposal has a touch of contemporary reality, with tough sanctions against Russia, the seizure of half of its international reserves (approximately US $ 330 billion) and the exclusion of some Russian banks from the Global Payments Network (SWIFT). ), Causing distrust in the dollar-backed system.
The result, of course, is a search for some variety. But this is nothing new. At the beginning of the millennium the dollar was 80% of the financial reserves, now it is at 60%, the IMF said.
It is a legitimate desire to have one’s own currency of global value. The problem is having coins with recognized values. It is not difficult to declare a “tune” in Latin America, the question is to accept it in the Pacembo Pastel Tent in Sao Paulo and in the Takambar Pisco grocery store in the Peruvian province thousands of kilometers away. Capital, where can only be reached by boat or plane.
Until then, there will be a long way to go, full of obstacles like the general regional rules of independence and the dynamics of capital and exchange rates – the necessary details, but still omitted in the version of the proposal described by the PT.
By retrieving a single currency thesis, Lula can pay tribute to former Peruvian President Alan Garcia. He was the first to put the idea publicly on the table. It took place on January 15, 2007 in Quito, at a meeting of heads of state attending the inauguration of Rafael Correa as President of Ecuador. Lula was there.
Garcia committed suicide in Lima in April 2019 to avoid arrest on corruption charges. Korea has been granted asylum in Belgium but has faced similar court charges in Quito. In both cases there was a common regional currency – the bribe, issued by the Odebrecht Group’s Structured Operations Division.