Brazil President Luiz Inácio Lula da Silva Calls for Alternative Currency to the US Dollar.
In a recent speech at the New Development Bank of Shanghai, Brazil’s former president Luiz Inácio Lula da Silva urged developing nations to find an alternative currency to the dollar. Lula denounced the central role of the greenback in global trade and called for BRICS nations to establish a common currency to transact with.
Lula questioned the dominance of the US dollar and asked why developing nations couldn’t trade based on their own currencies. He further questioned who decided that the dollar would be the currency after the disappearance of the gold standard. This statement reflects the growing discontent among developing nations about the dominance of the US dollar.
Brazil’s president also highlighted the strengthening ties between Brazil and China, as the two nations recently agreed to use the yuan in cross-border trade. This move could be seen as a step towards reducing reliance on the US dollar in international trade.
However, analysts are skeptical about the possibility of de-dollarization due to the lack of good alternatives. Despite the increasing dissatisfaction with the US dollar, it remains the most widely used currency in international transactions.
Nevertheless, Brazil’s former president Lula’s call for developing nations to find an alternative to the dollar reflects the growing discontent among developing nations about the dominance of the US dollar in global trade. While the idea of a common currency for BRICS nations seems appealing, it is unlikely to happen anytime soon due to the lack of good replacements. Nonetheless, this call could serve as a wake-up call to the international community to address the underlying issues of the global monetary system.
