Luiz Inacio Lula da Silva, Brazil’s President, has called for an end to the US dollar’s dominance in international trade. He is one of many people to say this. In particular, Da Silva has asked developing countries to work on making their own money to replace American money.
Beijing has been trying to make the US dollar less important in international trade, and Brazil’s President’s comments come simultaneously. On the other hand, the BRICS countries are making their currency less important than the dollar.
In the past few weeks, there have been a lot of calls for international trade to stop using American currency. Also, Brazil’s President, Luiz Inacio Da Silva, has called for an end to the US dollar’s dominance in trade.
According to the Financial Times, the statements came from Lula Da Silva’s first trip to China since he became president in January. Since then, he has pushed the BRICS group to develop their own currency for trade. Brazil, China, Russia, India, and South Africa are the countries that make up the BRICS bloc.
In a speech at Shanghai’s New Development Bank, Lula said, “Every night, I ask myself why all countries have to base their trade on the dollar.” “Why can’t we use our currencies to trade?” He added. “Who decided the dollar would be the currency after the gold standard disappeared?”
Lula Da Silva has joined China’s recent efforts to make the world less dependent on the US dollar. The report also says that Beijing has done more to promote the use of the renminbi for some cross-border trades of goods.