The media has been rather silent about the agreement of the ten member countries of “Alternativa Bolivariana para las Américas “ (ALBA).

Earlier this month ALBA members (Bolivia; Venezuela; Cuba; Ecuador; Nicaragua; Honduras; Republica Dominicana; Saint Vincent and Antigua and Barbuda) announced the creation of a new intra-regional currency to replace the US Dollar starting next year (2010). The new currency called the Sucre in honor of Jose Antonio de Sucre, who helped Venezuela fight for independence from Spain two hundred years ago, appears to the first steps to create a new financial union for members of ALBA. This action is similar to the way the Euro was established. The Sucre will be currency these countries will use for intra-regional trade and will “possibly” replace the current currency of each country.

It is obvious that Venezuela is the primary power player in ALBA, and not a fan of the United States. The move of ALBA effect on United States purchases from this region cannot be determined at this time.

There are numerous questions political and financial groups are asking about this move. A few of the questions are: 1. Will more countries unite to form regional financial alliances? 2. Will this action be a threat to the value of the US dollar? 3. Will the next step among this regional financial alliance be formation of a regional military force?

Only time will determine if the Sucre will replace the US Dollar in trade with these Latin-American countries.