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

Zinger Key Points
  • Lula wants BRICS nations to move away from USD, creating currency stability and reducing export hurdles.
  • The NDB was praised by Lula for empowering emerging countries to address global issues without conditionalities.

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.

See Also: New World Currency? Here Are 3 Reasons Why The US Dollar Isn't Going Away, Despite BRICS Ambitions

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.

See Also: Bitcoin Goes Legit In Argentina: Securities Regulator Approves BTC Index Futures Contracts On Rofex Exchange

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.

Now Read: New World Currency? Here Are 3 Reasons Why The US Dollar Isn't Going Away, Despite BRICS Ambitions

Image Via Shutterstock, the content was partially edited with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: AsiaLatin AmericaMacro Economic EventsNewsPoliticsGlobalEconomicsMarketsGeneralBRICSBRICS single currencyDilma RousseffEmerging EconomiesGlobal financial institutionsInternational TradeLula da SilvaNew Development BankUS dollar dominance
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!