Lula Proposes USAN to Revitalize South America, Shifts Away From US Dollar

• Brazilian President Luiz Inacio ‘Lula’ Da Silva proposed to integrate all the countries in South America again through the Union of South American Nations (USAN).
• Lula also proposed to shift away from the U.S. dollar by using a standard reference currency for bilateral settlements among countries in the region.
• He also suggested USAN implement currencies different from the U.S. dollar in settling bilateral payments in the region and rescuing naive credit mechanisms to avoid relying on international financial institutions like the International Monetary Fund (IMF).

Proposal for Integration Through USAN

Luiz Inacio “Lula” Da Silva, President of Brazil, proposed to integrate all the countries in South America again through the Union of South American Nations (USAN). While giving his opening speech at a summit with 11 presidents of South America present, he stated that there is no time to lose and that “South America has before it, once again, the opportunity to walk the path of unity.” USAN is a regional integration institution that was formed in 2008 to organize different views between countries in South America; however, half of them are not yet part of it. Lula added that “no country can face today’s systemic threats alone“ and thus only by acting together can they overcome these issues.

Shifting Away From The US Dollar

In addition to proposing integration through USAN, Lula also proposed shifting away from using only the U.S. dollar as a reference currency for bilateral settlements among countries in South America by implementing other currencies instead and rescuing naive credit mechanisms so they don’t have rely on international financial institutions like IMF for economic assistance or support. During a bilateral meeting with Venezuelan President Nicolas Maduro at Brasilia, he expressed his desire to conduct trade relations within South America with another currency apart from U.S dollar as its reference unit for trade reducing dependence on extra-regional currencies outside their own nations/region.

Regional Integration is Necessary

Lula further emphasized on how important regional integration is for each country’s development today due to globalization hurdles present everywhere across boundaries so as to be able reduce dependence on external markets and make their local economy more self-reliant and stronger than ever before while being able collaborate amongst one another contributing positively towards each others growth rather than competing against one another for resources or opportunities leading towards an unified goal and purpose driven development model which will be beneficial both economically as well as socially across all nations involved providing each nation members equal access and benefits when participating within such an integrated system .

Advantages Of Integrating Currency System Across Regions

Integrating currency systems across regions provides many advantages such as increasing liquidity risk management capabilities across various global markets since transactions are conducted faster without any delay or downtime due which may occur if different currencies were being used leading towards higher profits margins per transaction besides having better control over price fluctuations while trading internationally amongst multiple partners leading towards better risk management capabilities etc,.

Conclusion

To conclude , integrating all countries under one single umbrella organisation like USAN would have many positive effects and increase overall stability between various member states while shifting away from USD being used exclusively when conducting bilateral settlements would provide more flexibility when dealing with trades or business activities amongst multiple partner organisations while reducing dependence upon external sources who may not always have our best interests at heart .