Brazil to Push De-Dollarization Agenda at BRICS Meeting

Brazilian President Luiz Inácio Lula da Silva has revealed his intention to raise the issue of de-dollarization at the next BRICS meeting. “Why Brazil and Argentina would trade in dollars. Why don’t we do it in our own currencies? Why can’t Brazil and China trade in their currencies? The question of why I need to buy dollars is on my agenda,” said the Brazilian president.

Brazil Intends to Discuss De-Dollarization With BRICS Partners

Brazilian President Luiz Inácio Lula da Silva stated Friday during the Paris summit on a new global financial pact that he intends to raise the issue of de-dollarization at the next BRICS meeting, Tass reported. The BRICS nations comprise Brazil, Russia, India, China, and South Africa. The economic bloc’s leaders’ summit is set to take place in Johannesburg, South Africa, on Aug. 22-24.

The Brazilian president was quoted by the news outlet as saying (translated by Google):

It’s not clear why Brazil and Argentina would trade in dollars. Why don’t we do it in our own currencies? Why can’t Brazil and China trade in their currencies? The question of why I need to buy dollars is on my agenda. And if it depends on me and only on me, then we will discuss this at the next BRICS meeting.

Leaders from 50 states are gathering in Paris for a two-day summit on a new global financial pact hosted by French President Emmanuel Macron. The objective of the meeting is to reach a consensus on reforming the global financial system and develop proposals for further discussion in other forums.

Last week, Macon reportedly expressed interest in attending the upcoming BRICS summit. However, Russia has opposed the French president’s participation, citing “a hostile and unacceptable policy” towards Moscow.

The Brazilian president has been vocal about countries ditching the U.S. dollar in global trade and using their national currencies instead. He has also expressed support for the creation of a common BRICS currency, a topic that is expected to be discussed at the economic bloc’s upcoming leaders’ summit. Lula said in April: “I am in favor of creating, within the BRICS, a trading currency between our countries, just like the Europeans created the euro.”

He also sees the BRICS bank as an alternative financial institution, stating in May: “We want the BRICS bank to strengthen as an alternative instrument for financing, and we will reinforce our cooperation with the African Development Bank.”

What do you think about Brazilian President Lula intending to raise the issue of de-dollarization at the next BRICS meeting? Let us know in the comments section below.

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