Key Takeaways
. The President of Brazil has questioned the dominance of US dollar as global trade currency
. Lula da Silva is on an official visit to China in a bid to strengthen relations with Beijing
. The Brazilian President has defied Washington on several occasions since taking office again in January 2023
YEREVAN (CoinChapter.com) — In what comes as another blow to the Biden Administration’s foreign policy, another rising economy has called for the end of the US Dollar’s dominance in global trade. During his official visit to China, Brazilian President Luiz Inácio Lula da Silva urged developing nations to replace the American currency with their own.
Echoing similar sentiments expressed by Beijing earlier, the 76-year-old leader questioned the logic behind everyone accepting the greenback as a reserve currency.
“Every night I ask myself, why are all countries obliged to do their trade backed by the dollar. Why can’t we do our trade backed by our currency? Who decided to use the dollar as a currency after the gold standard disappeared?”
he asked, drawing loud applause from the audience.
The veteran politician had previously served as President of the country between 2003-2010. He came back to power in January 2023 with a clear agenda to make Brazli’s voice heard on the global platform.
Unsatisfied with his criticism of the US dollar, he called for a new currency “to finance trade between Brazil and China, between Brazil and other BRICS countries.”
Recommended: Is Russia becoming an “economic colony” of China? CIA director William Burns thinks so!
Brazil President Lula da Sila has thrown an open challenge to the US
The Brazilian President is not new to antagonizing the United States. It has just been a little over three months since he took office, but he has already sent strong messages to Washington.
He has explicitly refused to condemn Russia’s invasion of Ukraine. Moreover, he slammed US President Joe Biden for using the recently-held virtual ‘Summit for Democracy’ to pass a resolution against Moscow.
In February 2023, Lula da Silva ignored pressure from the US and allowed two Iranian warships to dock in Rio de Janeiro. Relations between Tehran and Washington are tensed. The veteran left-wing politician’s move was a clear message to the White House.
In another snub to the US, President Lula announced in December 2022 that he will restart diplomatic relations with Venezuela. Under President Jair Bolsonaro, Brazil has cut off its relations with the country and its president Nicolás Maduro.
Days after taking office, his Government dispatched Ambassador Flávio Macieira to Venezuela to start the reopening of the Embassy of Brazil in the country. Moreover, his government confirmed Manuel Vicente Vadell Aquino as the Ambassador of Venezuela in Brazil.
Given President Lula’s actions, it is not surprising that he is calling for the end of the US Dollar’s global dominance.
Also Read: US Dollar’s dominance as reserve currency will end under Joe Biden-Donald Trump
