Regional Payment Agreements in Latin America

In a global scenario marked by the hegemony of the dollar and growing monetary tensions, Latin America is seeking alternatives that strengthen its financial autonomy and promote regional integration. Regional Payment Agreements (RPAs) emerge as a key instrument to facilitate intraregional trade, reduce dependence on major financial centres, and open the way for a more sovereign development model.

Written by: Marcelo Bruchanski

Descripción

The report “Regional Payment Agreements in Latin America: history, challenges and future prospects” analyses the evolution of these mechanisms from the 1930s to the present, reviewing key experiences. Among them are the Reciprocal Payments and Credits Agreement (CPCR) of the Latin American Integration Association, the Local Currency Payment System (SML) created between Mercosur countries, and the Single Regional Compensation System (SUCRE) promoted by the ALBA countries. Although their use has been limited in recent decades, Regional Payment Agreements continue to offer strategic potential to save foreign currency, boost regional value chains and advance towards greater monetary autonomy. The document draws lessons from these experiences and proposes ways to revitalise such agreements in today’s global context of fragmentation and intensifying financial disputes.