Brazil’s Lula calls for end to dollar trade dominance

Authored by ft.com and submitted by hecate47
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Hidden-Syndicate on April 13rd, 2023 at 21:18 UTC »

Typical BRICS talking point, little change on the ground. By agreeing to conduct trade in Chinese currency Lula has kneecapped his own exports to the winds of the Chinese economy, very smart going there.

China is one of the most egregious violators of their currency rate against the dollar, so if they have a bad harvest one year due to floods and famine, why wouldn’t they manipulate their currency to import cheaper soybeans from Brazil?

dreadnough7 on April 13rd, 2023 at 21:11 UTC »

Nobody has to use the USD -- people choose to use USD because it is the safest FIAT currency.

I mean, nobody stops him to once again use gold/silver to settle Brazil's trades. The reason Brazil hasn't done it not because the Americans forced them to use the dollar -- it's the incomparable convenience of the dollar.

hecate47 on April 13rd, 2023 at 19:30 UTC »

SS: Brazil’s president Luiz Inácio Lula da Silva has called on developing countries to work towards replacing the US dollar with their own currencies in international trade, lending his voice to Beijing’s efforts to end the greenback’s dominance of global commerce.

Kicking off his first state visit to China since taking office in January, Lula called for the countries of the so-called Brics group of nations — which in addition to Brazil and China includes Russia, India and South Africa — to come up with their own alternative currency for use in trade.

“Every night I ask myself why all countries have to base their trade on the dollar,” Lula said in an impassioned speech at the New Development Bank in Shanghai, known as the “Brics bank”.

“Why can’t we do trade based on our own currencies?” he added, drawing loud applause from the audience of Brazilian and Chinese dignitaries. “Who was it that decided that the dollar was the currency after the disappearance of the gold standard?”

Lula’s call to shed dollar dependence dovetailed with Beijing’s increasing efforts to promote use of the renminbi in settlement of cross-border commodities trades, as Chinese policymakers seek to strengthen the role of the world’s second-largest economy in the global financial system.