Brazilian President Lula Calls For BRICS Nations To Move Away From US Dollar Dependence

Brazilian President Luiz Inácio Lula da Silva has advocated for a shift away from reliance on the US dollar in global trade, proposing a single currency for transactions among the BRICS nations. Speaking at the inauguration of Dilma Rousseff, the newly-appointed President of the New Development Bank (NDB), Lula criticized the dependence on the U.S. dollar for international commerce.

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Lula questioned the necessity of conducting trade anchored in the U.S. dollar, asking, “Why are all countries obligated to do their trade based on the dollar? Why can't we do our trade based on our currency?” He argued that alternative currencies would create a more stable environment for countries, as they would no longer need to chase dollars for export purposes.

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Acknowledging the difficulty of implementing such a change, Lula advised Rousseff to exercise patience and emphasized the importance of the NDB in fostering a unique currency for BRICS nations to finance trade relations. He also criticized financial institutions such as the IMF for their lending practices to countries facing financial difficulties, calling for patience and tolerance in renewing agreements.

Lula praised the creation of the NDB, highlighting its role in combating inequality, hunger, and extreme poverty. He noted that the NDB would change the way emerging countries address global issues, filling financing gaps left by traditional institutions. Lula applauded the establishment of a global development bank without the involvement of developed countries in its initial phase, avoiding conditionalities often imposed on emerging economies.

Lastly, Lula underscored the significance of having a woman lead a global bank and assured that Brazil is ready to re-engage with the international community, contributing to key issues such as climate crisis mitigation and the fight against hunger and inequality.

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