I’ve recently gotten several news reports of important developments that signal both greater independence for Latin America and a further weakening of the dollar as the dominant world currency. Here are some excerpts and links. -t.h.g.
Seven countries, including two Caribbean islands, signed a document today paving the way for the establishment of a single currency among them, Cuban state media reported today.
The political leaders of Venezuela, Bolivia, Honduras, Nicaragua, Ecuador, Cuba and Dominica issued a final Declaration on Wednesday that gives a green light to the creation of a single currency, called the Sucre, that will initially circulate virtually, Granma said.
Another report on the meeting had this to say:
“We will leave the Inter-American Development Bank and we will make our own bank, a bank that we ourselves manage,” said Chávez.
Rafael Correa, the president of Ecuador, asked for support from ALBA member countries as he seeks international tribunals to relieve Ecuador of debt incurred by past governments which operated according to the values of U.S.-dominated international financial institutions.
And a related story reported agreement talks between Russian and Venezuelan leaders:
Talks in Caracas between Russian President Dmitry Medvedev and his Venezuelan counterpart Hugo Chavez have yielded a host of bilateral agreements.
“We have discussed with President Chavez the use of the national currencies, the ruble and the bolivar, in bilateral payments,” Medvedev said at a news conference in Caracas.
The two countries also agreed to sign another intergovernmental agreement to set up a joint bank within the next two weeks, Medvedev said.
The joint bank could become an instrument to finance projects in Russia and Venezuela, and will handle payments for oil supplies and will involve Gazprombank, Russia’s third-largest bank.
The Russian president said Moscow and Caracas could switch to national currencies in bilateral payments.