Brazilian President urged to find an alternative to the dollar in world trade

Brazilian President Luiz Inacio Lula da Silva announced the need to create an alternative currency to the dollar for settlements in international trade. He stated this at the inauguration ceremony of the new head of the BRICS Development Bank, Dilma Rousseff, in Shanghai.

“Who decided that the dollar will become the currency for settlements after gold? Why not the yen, why not the real, why not the peso? Because once our currencies were weak and had no value in other countries,” said the Brazilian leader (quote by G1).

Lula da Silva also asked a rhetorical question about the possibility of using an alternative currency in settlements between Brazil and the BRICS countries, he suggested that other states use their own currencies in trade and abandon the dollar.

March 30 Brazil and China concluded yuan trading agreement. The countries also agreed to create an offshore clearing center that will allow them to provide loans without using the dollar.

In mid-January, South African Foreign Minister Naledi Pandor statedthat the BRICS are looking to replace dollar payments with a “more fair” money exchange system. According to her, the payment system in dollars is designed for rich countries, while at the same time it is unprofitable for poor countries.

The Russian authorities have also repeatedly called for abandoning the dollar. In September 2022, Russian President Vladimir Putin declaredthat the de-dollarization process is inevitable. During a speech at the plenary session of the Eastern Economic Forum (WEF) He notedthat confidence in the dollar, euro and pound sterling has been lost.