Brazilian President Luiz Inácio Lula da Silva on Thursday showed his support for finally replacing the US dollar in international trade. At the same time, this calls into question the hegemony that the currency has maintained for decades.
during one speech The currency issued in China was criticized by the Brazilian president for not being traded between countries with local currencies.
“Who was the one who decided that the dollar was the currency after the gold standard disappeared? (…) Who decided that our currencies are weak and worthless?” said the socialist leader.
Lula was in Shanghai to attend the inauguration of former Brazilian President DIlma Rouseff as President of the New Development Bankalso known as “BRICS Bank”.
In this sense, the politician said he agrees that the countries of the BRICS (Brazil, Russia, India, China and South Africa) Work on creating a new currency that can replace the dollar for trade between these nations.
For his part, the President questioned such a bench have no currency to finance trade relations among the BRICS countries. However, he acknowledged that this is a difficult task as “everyone depends on a single currency”, which is the US dollar.
What Lula said was directly related to the recent announcement by the Vice President of the Russian Duma, Alexandr Babakov. He noted during a forum in India that the BRICS countries were working on a “new form of currency” that would eventually supplant the US dollar.
As reported by CriptoNoticias, Babakov suggested that the BRICS currency could be backed by gold, metals, land, land and other commodities. According to this politician the dollar and the euro “are not backed by anything”.
Lula da Silva joins the rebellion against the US dollar
Likewise, Lula da Silva’s speech is directly related to the rebellion against the US dollar It’s been going for several weekswith China at the forefront of this crusade.
The Asian giant, looking to revalue its national currency, started its move with an international purchase of liquefied gas, which it paid for in yuan rather than dollars. This for the first time in history. Later it became known that this country had reached an agreement with Brazil to use exactly the local currencies for trade and avoid the greenback.
Along with the BRICS, the countries of Southeast Asia called for a reduction in dependence on the dollar and western financial services. And not satisfied, French President Emmanuel Macron recently said that Europe must stop relying on the dollar’s “extraterritoriality”.
Thus, historic regional allies of the United States in Latin America, Europe and Asia confirm their turn. Next to, they seem to be betting on getting further and further away from the dollara currency that is losing its benefactors as rebellion against them spreads.