The initiative is expected to be announced during Brazilian President Luiz Inacio Lula da Silva's visit to Argentina that kicks off on Sunday night. The countries plan to invite other Latin American states to join the common currency union, the media outlet reported.
"There will be … a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks," Argentine Economy Minister Sergio Massa told the newspaper.
The two nations have been in talks over the common currency for several years, but Brazil's Central Bank has criticized the idea and hindered the negotiation progress, an official close to the matter told the newpaper. However, the rise to power of left-wing leaders in both countries has eventually provided the proposal with a greater government support, the official added.
According to the newspaper, this move could finally create the world's second-largest currency bloc with roughly 5% of global GDP, if the initiative is successfully implemented across all of Latin America. The common currency is likely to be called the "sur" (south), as suggested by Brasilia.