Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Information Minister in Pakistani-administered Kashmir: Five civilians killed and at least 29 others injured in shelling across the border with India
Israeli Army Radio's diplomatic correspondent quoted a senior Israeli official as saying: So he [Trump] decided to cut off contact. That might still change, but that’s the situation right now
Israeli Army Radio's diplomatic correspondent quoted a senior Israeli official as saying: Trump’s circle told him [Dermer] that Netanyahu was manipulating him, and there’s nothing Trump hates more than being portrayed as someone being played
Senior Palestinian official to Al Mayadeen: Meetings between the Israelis, Egyptians, and Qataris are all centered around the Israeli proposal, which does not guarantee an end to the war [on Gaza]
Senior Palestinian official to Al Mayadeen: “Israel” is threatening to expand the ground offensive if Hamas rejects the proposal
Senior Palestinian official to Al Mayadeen: Hamas rejects the Israeli proposal, viewing it as failing to guarantee an end to the war
Senior Palestinian official to Al Mayadeen: “Israel” is sticking to its proposal, and insists there is no alternative offer on the table for negotiation
Senior Palestinian official to Al Mayadeen: The meetings between the Israelis and the Egyptians and Qataris all revolve around the Israeli proposal
The administration was clearly looking for an off-ramp for this campaign against Ansar Allah, NBC News reports, citing US official
Trump's operation against Ansar Allah cost more than $1 billion, NBC News reports, citing US official

Lula calls on Global South to ditch USD, trade in own currencies

  • By Al Mayadeen English
  • Source: Financial Times
  • 13 Apr 2023 21:46
  • 6 Shares
6 Min Read

Lula questions "who decided that currencies of developing currencies were weak and didn’t have value in other countries."

  • x
  • Lula calls on Global South to ditch USD, trade in own currencies
    “Every night I ask myself why all countries have to base their trade on the dollar,” Lula said while in Shanghai, China on Thursday, April 13, 2023.

Brazilian President Luiz Inacio Lula da Silva called from China on countries of the Global South to work toward ditching the USD in their international trade and resort to their own currencies instead, the Financial Times reported on Thursday.

Lula is visiting China from April 12-15, where he is expected to meet with Chinese President Xi Jinping in Beijing on Friday.

The Brazilian leader also urged BRICS nations to establish a common currency as the basis of trade.

Read more: De-dollarization: Slowly but surely

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

“Why can’t we do trade based on our own currencies?” he added, amid heavy rounds of applause by the attendees. “Who was it that decided that the dollar was the currency after the disappearance of the gold standard?”

Lula's visit to China follows a similar tour by France's Emmanuel Macron, who encouraged Europe to build more strategic autonomy, including independence from the US currency.

Lula's journey to China is part of the leader's attempt to resurrect Brazil's multilateralism heritage, which was largely abandoned under previous President Jair Bolsonaro.

His China trip further reflects his policy to establish balanced relations with other countries, where the Brazilian president also made a visit to the United States last month to meet with US President Joe Biden.

Lula also visited Huawei on Thursday, China's tech giant that came under US sanctions over Washington's fear of Beijing's increased trade with global countries, most notably Europe which has made an extended amount of deals to acquire the firm's 5G advanced telecom systems.

Read more: Washington concerned of visit by Brazil's Lula to Huawei in China

Attending the inauguration of former Brazilian President Dilma Rousseff as the new president of the New Development Bank in Shanghai, Lula reiterated his calls to adopt local currencies as an alternative to the USD in settling trades between BRICS nations. New Development Bank members, alongside BRICS countries, include Egypt, the UAE, Uruguay, and Bangladesh.

“Who decided that our currencies were weak, that they didn’t have value in other countries?” he said.

Related News

Trump, Netanyahu aide held meeting before MidEast trip: Axios

US won't meddle in India-Pakistan conflict: JD Vance

“Why can’t a bank like that of the BRICS have a currency to finance trade relations between Brazil and China, between Brazil and other countries? It’s difficult because we are unaccustomed [to the idea]. Everyone depends on just one currency,” he said in his speech.

South Africa announced last week that it has begun preparing to host all BRICS leaders, including Russian President Vladimir Putin, as part of their participation in the August summit.

On January 18, South African Foreign Minister Naledi Pandor said the BRICS club of emerging economies seeks to discover a way of bypassing the dollar to create a fairer payment system that would not be skewed toward wealthy countries.

"The systems currently in place tend to privilege very wealthy countries and tend to be really a challenge for countries, such as ourselves, which have to make payments in dollars which costs much more in terms of our various currencies," she said then.

More nails in Washington's hegemony coffin

More systems, such as BRICS, Shanghai Cooperation Organisation, and countries taking part in China's Belt and Road Initiative, are growing as alternative trade and monetary bodies to ones dominated and influenced directly by the United States, which exploited these international organizations to extend its hegemony and colonization in vast parts of the world.

Read more: Future of global economy belongs to SCO, BRICS: Iran Econ Minister

Earlier in March, China and Brazil struck a deal to ditch the US dollar in their bilateral transactions, which is expected to reduce investment costs and develop economic ties between the two countries.

This week, Brazil's branch of the state-owned Industrial and Commercial Bank of China (ICBC) made its first local transaction directly in Chinese yuan, according to Chinese state media.

The agreement between the Asian superpower and Latin America's largest economy - the mutual top trading partners - was the latest of the ongoing financial and political strikes against the green banknotes.

In 2022, trade volume between the economic giants hit a historic record of over $150.5 billion in bilateral trade - as Beijing increased its purchase of Brazil's agricultural products and minerals and further expanded its investments in Latin America's largest market.

Read more: BRICS to establish a 'geological platform'

China's yuan has more than doubled to 4.5% in global trade, the SWIFT financial system said according to its data. Russian Central Bank announced earlier that the share of the Chinese Yuan on the Russian exchange market increased to 39% in March.

An economist at the American bank and financial giant Goldman Sachs considered that the Chinese yuan is expected to grow even more in global trade, citing financial structural reasons.

“In light of the renminbi’s comparatively small role in trade finance relative to China’s market share of around 15 per cent in global goods trade . . . it makes sense for the currency’s share of trade finance to continue rising,” Maggie Wei said according to the Financial Times.

However, the economist claimed that serious challenges face Brazil's aims to ditch the USD in the near future, as the dollar is crucial for the trade of global trade of commodities and their benchmarks.

  • United States
  • BRICS
  • Lula da Silva
  • Yuan
  • Brazil
  • US
  • China
  • de-dollarization
  • Luiz Inácio Lula da Silva
  • SCO

Most Read

Pro-Palestinian protesters march toward the US Immigration and Customs Enforcement (ICE) headquarters, Saturday, April 5, 2025, in Washington (AP)

US House to vote on bill criminalizing boycott of 'Israel'

  • Politics
  • 3 May 2025
Throughout Operation Prosperity Guardian, current and former US military and intelligence officials expressed disquiet at the enormous “cost offset” involved in battling Ansar Allah. (Al Mayadeen English; Illustrated by Zeinab El-Hajj)

Ansar Allah triumphant: US facing Red Sea defeat again

  • Opinion
  • 3 May 2025
Pakistan downs an Indian jet and hits a military base in Kashmir escalation.

Pakistan downs 3 Indian jets, hits military base in Kashmir escalation

  • Politics
  • 7 May 2025
Trump cut off contact with Netanyahu, senior Israeli official says

Trump cut off contact with Netanyahu: Israeli media

  • US & Canada
  • Today

Coverage

All
Gaza prevails against genocide

Read Next

All
UN experts warn: Stop the genocide or witness Gaza's end
Politics

Stop the genocide or witness end of life in Gaza: UN experts warn

Israeli police attack mourners as they carry the casket of killed Al Jazeera veteran journalist Shireen Abu Akleh during her funeral in occupied al-Quds, Friday, May 13, 2022. (AP)
Politics

Israeli sniper who killed journalist Shireen Abu Akleh identified

The Department of Defense logo is seen on the wall in the Press Briefing room at the Pentagon, Oct. 29, 2024, in Washington. (AP)
Politics

Pentagon’s unused properties drain billions in taxpayer funds

Haaretz
Palestine

Israeli military avoids calling up unwilling reservists: Haaretz

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS