Brazilian President Luiz Inacio Lula da Silva on Thursday spoke out against the dominance of the dollar in international trade, instead proposing that national currencies be used and new financial instruments be created.
“Every night I ask myself this question: Why should all countries be pegged to the dollar in trade? Why can’t we do it utilizing our own currencies?” he said during an event at the headquarters of the New Development Bank, a bank established by BRICS, prompting a standing ovation. “Why aren’t we trying to create something new? Whose idea was it in the first place that after the gold standard was abandoned, the dollar should be the currency, and not the yuan, real or peso?”
This situation, according to the politician, does not serve the interests of developing countries, which are forced to “run in search of the dollar” in order to be able to export their products. Central banks, he said, could develop appropriate alternative mechanisms for mutual payments. As a possible trading tool, Lula da Silva suggested that the NDB consider an alternative to the dollar in payments between the BRICS countries (Brazil, Russia, India, China and South Africa).
“It’s difficult and inconvenient for many,” he conceded, saying that there should be no rush in this matter.
Addressing former Brazilian president Dilma Rousseff, who was elected the head of the NDB the day before, Lula da Silva called on her to “turn the BRICS Bank into the main investment bank for developing countries.”
With information from TASS