Brazil’s President Luiz Inácio Lula da Silva recently announced his plan to bring the topic of de-dollarization to the table at the forthcoming BRICS meeting. “What’s the rationale behind Brazil and Argentina trading in dollars? Can’t we conduct trades using our local currencies? What compels us to purchase dollars? These are the questions I intend to raise,” remarked the Brazilian President.
Brazil Plans to Delve into De-Dollarization Issue with BRICS Cohorts
During the Paris summit on a global financial pact last Friday, Brazilian President Luiz Inácio Lula da Silva disclosed his intentions to discuss de-dollarization at the approaching BRICS meeting, according to a Tass report. The BRICS nations, an economic alliance comprising Brazil, Russia, India, China, and South Africa, are gearing up for their leaders’ summit slated for August 22-24 in Johannesburg, South Africa.
The news outlet cited the Brazilian President saying (as translated by Google):
The necessity for Brazil and Argentina to trade in dollars is unclear. Can’t we trade using our native currencies? Is it not feasible for Brazil and China to conduct transactions in their own currencies? These doubts regarding my need to procure dollars are on my list of issues to address. If it were up to me alone, these concerns would certainly feature in the discussions at the subsequent BRICS meeting.
Leaders from 50 countries are congregating in Paris for a two-day summit aimed at establishing a new global financial pact, an initiative spearheaded by French President Emmanuel Macron. The conference’s goal is to reach an agreement on restructuring the global financial system and generating propositions for additional deliberation in other forums.
Last week, Macron reportedly showed interest in attending the imminent BRICS summit. However, Russia has resisted Macron’s participation, alluding to “a hostile and unacceptable policy” towards Moscow.
President Lula has been outspoken about nations abandoning the U.S. dollar for international trades and adopting their own currencies instead. He has also publicly backed the idea of a shared BRICS currency, a subject anticipated to be a part of the discussions at the impending leaders’ summit. In April, Lula stated, “I support the establishment of a trading currency within BRICS, similar to how the Europeans introduced the euro.”
In May, he portrayed the BRICS bank as an alternative financial establishment, stating: “We aim for the BRICS bank to fortify as an alternate funding mechanism, and we intend to bolster our partnership with the African Development Bank.”
What are your thoughts on President Lula’s plan to tackle the topic of de-dollarization at the forthcoming BRICS meeting? Share your views in the comments section below.
Frequently Asked Questions (FAQs) about De-Dollarization at BRICS Meeting
What issue does Brazilian President Lula intend to raise at the upcoming BRICS meeting?
President Lula intends to discuss de-dollarization, which involves countries using their national currencies for global trade instead of the U.S. dollar.
Which countries make up the BRICS nations?
The BRICS nations are an economic alliance that includes Brazil, Russia, India, China, and South Africa.
When and where will the next BRICS summit take place?
The next BRICS summit is scheduled for August 22-24 in Johannesburg, South Africa.
What is President Lula’s stance on a common BRICS currency?
President Lula supports the idea of a common BRICS currency for trade among member nations, similar to how the euro is used in Europe.
What does President Lula view as an alternative financial institution?
President Lula sees the BRICS bank as an alternative financial institution and intends to strengthen cooperation with the African Development Bank.
More about De-Dollarization at BRICS Meeting
- BRICS Nations
- De-Dollarization Explained
- Profile of Brazilian President Lula
- African Development Bank
- About the BRICS Bank