Nadia Farooq
23 August in Johannesburg: To challenge the dominance of the US dollar, Brazilian President Luiz Inacio Lula da Silva has advocated for the development of a BRICS single trade currency.
Lula da Silva stated at the BRICS Business Forum Leaders’ Dialogue that an alternative to the US dollar needs to be found on the global market and called for the creation of a common currency for inter-BRICS trade without affecting national currencies.
He said on Tuesday that the implementation of the unified currency will help commerce between the developing countries.
“We want BRICS to be a multilateral institution, not an exclusive club,” Lula da Silva said. All we want to do is arrange ourselves.
To lessen dependence on the US dollar in trade, he suggested in April that a regional common currency or comparable mechanism may be created.
Tuesday also saw the Brazilian president make the announcement that his nation may look into adopting the Chinese yuan in commerce with Argentina.
“We cannot rely on a single nation that issues more cash in the form of the dollar, which forces us to rely on the currency’s fluctuations in order to make ends meet. It’s wrong,” he said.
