Brazilian President Luiz Inácio Lula da Silva has expressed his determination to tackle the de-dollarization issue during the upcoming BRICS meeting. With a focus on promoting trade in national currencies, President Lula da Silva questioned the need for trade between Brazil, Argentina and China in US dollars. This article explores his stance and highlights the importance of his proposals.
President Lula da Silva Takes a Stand:
During the Paris summit on a new global financial pact, President Lula da Silva announced his intention to raise the issue of de-dollarization at the upcoming BRICS meeting in Johannesburg. The BRICS Alliance comprises Brazil, Russia, India, China and South Africa, and their leaders will convene from August 22 to 24.
Inquire Dollar Usage:
Lula da Silva poses a thought-provoking question, asking why Brazil and Argentina trade in US dollars instead of using their currencies. He further questioned the barriers preventing Brazil and China from trading in each other’s currencies. The President emphasized that the need to purchase dollars is a significant concern that needs to be addressed.
Paris summit objectives:
The Paris summit, hosted by French President Emmanuel Macron, brought together leaders from 50 countries for a two-day meeting to formulate a new global financial pact. This summit seeks to reach a consensus on international financial system reform and develop proposals for further discussion in various forums.
Russian Opposition to the Participation of the French President:
While President Macron expressed interest in attending the upcoming BRICS summit, Russia has refused his participation, citing it as a “hostile and unacceptable policy” towards Moscow. However, the BRICS meeting agenda remains focused on crucial economic discussions.
President Lula da Silva’s vision:
President Lula da Silva staunchly advocated reducing dependence on the US dollar in global trade. He supports the creation of a common currency among the BRICS nations, drawing parallels to the European Union’s creation of the euro. This proposition will be discussed during the upcoming BRICS leaders’ summit.
BRICS Bank as an Alternative Institution:
President Lula da Silva views the BRICS bank as a viable alternative financial institution. It seeks to enhance its role as a financing instrument and strengthen cooperation with the African Development Bank. This approach is in line with the bloc’s goal of promoting economic cooperation and reducing dependence on traditional financial systems.
President Lula da Silva’s push for de-dollarization within the BRICS alliance signals a shift towards using national currencies for trade and exploring the potential of a common currency. With the upcoming BRICS meeting serving as a platform for these discussions, the world is eagerly awaiting the results and implications of these economic considerations.