14 January, 2010

The new latin american currency, “Sucre”, will cost US $ 1.25

Economy & Politics, International Comments (4)

rnrnComunicas.- The value of the Unitary System of Regional Compensatory Payments (Sucre), which will start to operate virtually, was established at 1.25 dollars, as informed the Venezuelan Minister of People's Power for Economy and Finances Ali Rodriguez Araque.rnrnThe statements were made on Wednesday after a presidential event to grant credits from the state-run banks Banco Bicentenario and Banco de Venezuela. The first operation under the new system is expected to take place at the end of the month with the export of Venezuelan rice to Cuba.rnrnLikewise, the Bolivian Information Agency (ABI) informed that it is also expected the sale of Venezuelan cement to Bolivia and imports to Venezuelan from Bolivia of timber, food, textiles and other minor products.rnrn“Our goal with the Sucre is to create a new financial architecture to finish with the dependence on the dollar for trade operations between the nations member of the Bolivarian Alliance for the Peoples of Our America (Alba),” said the finances minister.rnrnIn addition, Rodriguez informed that the platform to be used for the countries to make the transactions was developed by the Bank of the Alba and the Venezuelan Banco del Tesoro.rnrn“The technological platform is ready to carry out transactions in real time; it was tested and we are ready for the first buying and selling operation,” the Venezuelan minister pointed out.rnrnLikewise, Minister Rodriguez informed that the Regional Monetary Committee was already appointed, which will be the top authority for this compensatory system used by Alba member countries.rn

About ALBA

rnThe Bolivarian Alliance for the Peoples of Our America  is an international cooperation organization based on the idea of social, political, and economic integration between the countries of Latin America and the Caribbean. It is associated with socialist and social democratic governments and is an attempt at regional economic integration based on a vision of social welfare, bartering and mutual economic aid, rather than trade liberalization as with free trade agreements. ALBA nations are in the process of introducing a new regional currency, the SUCRE. It is intended to be the common virtual currency by 2010 and eventually a hard currency.rnrnIn December 2008, ALBA member countries met again to approve the technical details of the introduction of the new currency that was named SUCRE.rnrnIn October 2009 leaders from ALBA agreed during a summit in Bolivia on the creation of the regional currency. "The document is approved," said Bolivian President Evo Morales, the summit host. President Hugo Chavez announced "The sucre - an autonomous and sovereign monetary system that will be agreed upon today so that it can be implemented in 2010." The three Caricom member states which are currently using the Eastern Caribbean Dollar have all agreed to use the new proposed SUCRE as a common currency for electronic transactions amongst ALBA members rather than the US dollar. These countries will not be issuing bills in the SUCRE currency,it will instead be used for electronic payment, and each country can withdraw the equivalent in its own currency.rnrnrnrnrnVia ABN and Wikipedia

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