Brazil’s President Reaffirms De-Dollarization Call – Brazil’s President Luiz Inacio Lula da Silva restated his desire to move away from the U.S. dollar in global trade and shared his views on expanding the BRICS economic bloc in advance of their upcoming summit. He emphasized that Brazil can trade with China using its own currency instead of the dollar. Lula has consistently criticized the dominance of the U.S. dollar in international trade, advocating for nations to embrace their own currencies over the USD.
He maintains that countries should opt for their respective currencies rather than relying on the USD. Regarding de-dollarization and using national currencies in trade settlements, the Brazilian president stressed: “Everyone knows that I defend the idea that we have our own currency to trade between countries. I have said publicly: why does Brazil need the dollar to trade with China? We can do it in our own currency. Why does Brazil need the dollar to trade with Argentina?”
The Brazilian leader also supports the idea of establishing a unified BRICS currency that many expect to undermine the dominance of the U.S. dollar. However, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, also known as the BRICS Bank, said last month that the creation of anything alternative to the USD is “a medium to long-term ambition.”
Lula additionally said: “I think the BRICS Bank needs to be more effective and more generous than the IMF (International Monetary Fund) — that is, the bank is there to help save countries and not to help sink countries, which the IMF often does.” Additionally, the President of Brazil discussed the topic of expanding the BRICS coalition, which consists of Brazil, Russia, India, China, and South Africa.
The upcoming summit of BRICS leaders is set to take place in Johannesburg from August 22nd to 24th. Over 40 countries have indicated their desire to become part of the BRICS alliance, with 22 nations having submitted formal membership applications. The summit has extended invitations to 69 countries, encompassing all African heads of state.
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“We are going to discuss the entry of new countries” into BRICS, President Lula said. While there are reports that Brazil has raised concerns over the expansion of the economic bloc, Lula stressed: “I am of the opinion that as many countries want to enter, if they are in compliance with the rules we are establishing, we will accept the countries’ entrance.”