Finance:SUCRE
The SUCRE (es; Spanish: Sistema Unitario de Compensación Regional, "Unified System for Regional Compensation") was a regional currency proposed for commercial exchanges between members of the regional trade bloc Bolivarian Alliance for the Americas (ALBA), which was created as an alternative to the Free Trade Agreement of the Americas (FTAA). The SUCRE was intended to replace the US dollar as a medium of exchange.
History
The SUCRE was first used as a virtual currency in 2010 in two transactions between Ecuador and Venezuela.[1] International trade between member states in SUCRE reached its maximum in 2012 with 2,646 transactions worth almost 1,066 million US dollars. In each following year, trade in SUCRE shrank. In 2015, there were 752 transactions worth around $345 million.[2]
Under the SUCRE treaty, each state party’s allocation of the common accounting unit was to be backed by obligations or financial instruments denominated in that state’s local currency.[3] This arrangement posed a particular issue for Ecuador, which had adopted the United States dollar as legal tender and therefore did not issue its own national currency.[4]
In the case of ALBA members Dominica, Saint Vincent and the Grenadines, and Antigua and Barbuda, the new currency posed a dilemma as they are already a member of the Eastern Caribbean Currency Union and use the East Caribbean dollar,[5] although none of them had agreed to the treaty establishing the SUCRE and the regional payments clearinghouse.[6]
The SUCRE is named after Antonio José de Sucre, a leading figure in Latin America's independence struggle. Agreement[7] in general terms for the currency was declared in 2009. The formal treaty[6] establishing the regional payments clearinghouse was signed by the six Latin American presidents in Cochabamba, Bolivia, on October 17, 2009. (The former currency of Ecuador, one of the SUCRE's users, was also called the sucre, but was abandoned and replaced by the US dollar after the economic crisis in 1999).
This currency has code XSU in ISO 4217 standard currency list. ISO 4217 Standard definition:
- "Data Standards, ISO 4217 - Currency Code Maintenance: Get the Correct Currency Code". SIX Group. 2022-10-01. https://www.six-group.com/en/products-services/financial-information/data-standards.html. Retrieved 17 October 2022.
- "List One: Currency, fund and precious metal codes" (XLS). SIX Group. 2022-09-23. https://www.six-group.com/dam/download/financial-information/data-center/iso-currrency/lists/list-one.xls. Retrieved 17 October 2022.
- "List Two: Fund codes registered with the Maintenance Agency" (XLS). SIX Group. 2018-08-29. https://www.six-group.com/dam/download/financial-information/data-center/iso-currrency/lists/list-two.doc. Retrieved 17 October 2022.
- "List Three: Codes for historic denominations of currencies and funds" (XLS). SIX Group. 2018-08-22. https://www.six-group.com/dam/download/financial-information/data-center/iso-currrency/lists/list-three.xls. Retrieved 17 October 2022.
- "Overview Amendments" (XLSX). SIX Group. 2022-09-23. https://www.six-group.com/dam/download/financial-information/data-center/iso-currrency/amendments/lists/overview-amendments.xlsx. Retrieved 17 October 2022.
In 2013 Uruguay joined the currency.[8]
In 2018, the government of Venezuela proposed using the Petro, instead, for trade within ALBA.[9][10]
See also
- Economic policy of the Hugo Chávez government
- Fedwire
- CHAPS
- Clearing House Automated Transfer System (CHATS)
- Currency Union
- Eastern Caribbean dollar – A regional currency of the Eastern Caribbean
- Hard bolívar
- Petro
References
- ↑ "Latin American Herald Tribune - Venezuela and Ecuador Make Trade Using New Virtual Currency". http://www.laht.com/article.asp?ArticleId=383865&CategoryId=10717.
- ↑ "Informe de Gestión 2015". http://www.sucrealba.org/images/informes/informe_2015.pdf.
- ↑ "Tratado Constitutivo del Sistema Unitario de Compensación Regional de Pagos (SUCRE)" (in es). La Gaceta, Diario Oficial. https://www.bcn.gob.ni/sites/default/files/Gaceta_Publicacion_del_Tratado_SUCRE.pdf.
- ↑ "Currency". UNHCR Ecuador. https://help.unhcr.org/ecuador/en/bienvenido-a/informacion-general-sobre-ecuador/moneda/.
- ↑ "Proposed ALBA currency the sucre poses dilemma for Dominica government". http://www.thedominican.net/2009/04/proposed-alba-currency-sucre-poses.html.
- ↑ 6.0 6.1 Agencia Latinoamericana de Información, 2009-10-19, Tratado Constitutivo del Sistema Unificado de Compensación Regional de Pagos (SUCRE)
- ↑ "Acuerdo Marco del Sistema Único de Compensación Regional de Pagos". Gobierno de Bolivia. 2009-04-16. http://www.sns.gov.bo/pag-doc/para%20la%20pagina%20WEB%20Antitransparencia/ALBA/ALBA-TCP/ALBA_TCP_009/ALBA_TCP_009.pdf.
- ↑ "Uruguay solicita adhesión al Sucre, sistema monetario de la Alba". http://www.elcomercio.com/avance-noticioso/Alba-Sucre-Uruguay-Mercosur-Venezuela-moneda-comercio-intercambios_0_888511312.html.
- ↑ "PRESIDENT MADURO PROPOSES THE PETRO FOR THE ECONOMIC AGENDA OF ALBA-TCP PETROCARIBE". 6 March 2018. http://www.pdvsa.com/index.php?option=com_content&view=article&id=8715:president-maduro-proposes-the-petro-for-the-economic-agenda-of-alba-tcp-petrocaribe&catid=10:news&Itemid=908&lang=en.
- ↑ "Expertos afirman que El Sucre ya es historia" (in es). https://www.newslocker.com/es-ec/region/sucre/expertos-afirman-que-el-sucre-ya-es-historia-en-la-agenda-2001comve/view/.
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