Brazilian President Luis Inacio Lula da Silva has urged the BRICS nations to find a new currency to replace the US dollar when trading with other countries. It supports China’s efforts to challenge US power. as he prepares to meet with Chinese President Xi Jinping in Beijing
Bloomberg News reported that The comments were made during a visit to the New Development Bank in Shanghai. It is an institution established by the BRICS countries: Brazil, Russia, India, China and South Africa. with Dilma Rousseff, former president of Brazil as the new CEO of the bank
“Why can’t an institution like the BRICS bank have its own currency to finance trade between Brazil and China? between Brazil and all other BRICS countries. Who decides that the dollar must be a trade currency after the end of its ties to gold?” Lula said.
China is trying to increase the use of the yuan in foreign trade. by last month Brazil and China have agreed to make it easier to use the yuan and real in foreign trade. The goal is to reduce costs by not using a third currency for transactions.
Brazilian Finance Minister Fernando Haddad joins President Lula on his visit to China. It said local currencies were already being used in bilateral trade through instruments, with the aim of expanding a mechanism that would allow trade agreements to be carried out without a third currency as an intermediary.
“The advantage is that it is not forced to conduct trades in national currencies that are not involved in such transactions,” Haddad told reporters in Shanghai.
