In a significant move aimed at strengthening the autonomy of emerging economies, Brazil plans to push the de-dollarization agenda at the upcoming BRICS (Brazil, Russia, India, China, and South Africa) meeting. With a growing consensus among member nations, this bold initiative seeks to reduce dependence on the U.S. dollar and promote greater financial sovereignty for BRICS nations.
Brazilian President Luiz Inácio Lula da Silva has expressed his determination to address the topic of de-dollarization during the upcoming BRICS meeting. President Silva questioned the necessity for Brazil and Argentina to conduct trade in dollars, suggesting using their respective currencies instead. He also emphasized the potential for Brazil and China to engage in trade using their own currencies, highlighting his intention to prioritize the issue of reducing dependence on the US dollar.
Brazil aims to initiate discussions on de-dollarization with its BRICS partner
According to Tass, Brazilian President Luiz Inácio Lula da Silva, speaking at the Paris summit on a new global financial pact, announced his intention for Brazil to push de-dollarization during the upcoming BRICS meeting. The BRICS nations, including Brazil, Russia, India, China, and South Africa, are scheduled to convene for their leaders’ summit in Johannesburg, South Africa, from August 22 to 24. President Silva was quoted by the news outlet stating (as 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.”
In Paris, leaders from 50 states are convening for a two-day summit hosted by French President Emmanuel Macron, focusing on a new global financial pact. The primary aim of this gathering is to achieve a collective agreement on the reformation of the global financial system and formulate proposals for future deliberations in additional forums.
Russia Objects to French President Macron’s Attendance at BRICS Summit
According to recent reports, French President Emmanuel Macron has shown interest in attending the forthcoming BRICS summit. However, his intention has faced opposition from Russia, who objected to President Macron’s participation, citing concerns over what they perceive as a “hostile and unacceptable policy” towards Moscow.
The president of Brazil has openly advocated for nations to abandon the U.S. dollar in international trade and adopt their own respective currencies. Additionally, he has shown his endorsement for establishing a unified currency among BRICS nations, which is set to be a prominent subject of discussion at the forthcoming leaders’ summit of the economic bloc. Lula expressed his support for this idea in April, stating, “I support the idea of creating a common currency for our countries within the BRICS, similar to how the euro was created by the Europeans.”
Furthermore, he perceives the BRICS bank as a viable substitute for traditional financial institutions. In May, he remarked, “We aim to enhance the BRICS bank’s role as an alternative financial resource, and we will strengthen our collaboration with the African Development Bank.”
In conclusion, Brazil to push for de-dollarization within the BRICS framework reflects a growing desire among emerging economies to reduce their reliance on the U.S. dollar. By promoting the use of national currencies in trade, establishing financial cooperation mechanisms, and exploring digital currencies, the BRICS nations aim to strengthen their financial autonomy and create a more resilient global financial system. Although challenges remain, such as the entrenched status of the U.S. dollar and currency stability concerns, the commitment of Brazil and the BRICS countries to pursuing de-dollarization signals a significant step towards rebalancing the global economy and fostering greater economic sovereignty.
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