Argentina and Brazil are discussing plans for a common currency — analysts can scarcely believe it

Argentina and Brazil are in early talks to create a common currency, as part of a coordinated bid to reduce reliance on the U.S. dollar. Analysts are highly skeptical, dismissing

the proposal as "pie in the sky." "It is hard to believe Argentina and Brazil would actually move in this direction given the discrepancies in the two economies at the present

stage," Mario Marconini, managing director at consulting firm Teneo, told CNBC. Argentina and Brazil, the two largest economies in South America, are in early talks to create a

common currency, as part of a coordinated bid to reduce reliance on the U.S. dollar. But some analysts are highly skeptical, dismissing the proposal as "pie in the sky"

because of the discrepancies between the two economies and the rapid shift of political winds in the region. "Our finance ministers, each with his own economic team, can

make us a proposal for foreign trade and transactions between the two countries that is done in a common currency," Brazilian President Luiz Inacio Lula da Silva said Monday at a

news conference in Buenos Aires, Argentina, according to Reuters. Speaking on his first international visit since taking office, Lula said that the currency would initially

be designed for trade and transactions between Brazil and Argentina. It could later be adopted by fellow members of Mercosur — South America's major trade bloc. Brazil's

Finance Minister Fernando Haddad said that the adoption of a common currency was not designed to replace the Brazilian real and the Argentine peso. He reportedly added that the

currency does not yet have a name or deadline, nor would the countries seek a euro-style monetary unification.