Argentina and Brazil recently announced preliminary plans to form a common currency known as the 'sur', meaning south, to be used in bilateral trade-related transactions in Latin America.
For the time being, it would not replace each sovereign nation’s currency, but would be used alongside their domestic money in an effort to reduce dependence on the US dollar. Forming a currency union à la the Eurozone in Latin America is not feasible for now but, in my view, this is not the real story.
Since the currency won't be as stable as the dollar, and because it won't be a real common currency like the EU, I don't really see the benefits of using such a currency. Is there any real benefit, especially economic, or is this a purely political move? What might be the pros and cons?