Brazilian President Lula: It is necessary to use a new currency for settlement in international trade
On the 23rd local time, Brazilian President Lula reiterated his call for the use of non US dollar currencies for settlement in international trade during the New Global Financing Compact summit in Paris, France.
Brazilian President Lula: Many people were shocked when Brazil proposed the use of a new currency in international trade. I don't know why we use the US dollar instead of our own currency in transactions between Brazil and Argentina? Why do we not use our own currency when trading between Brazil and China, but instead settle in US dollars?
Lula stated that using non US dollar currencies for international trade settlement will be one of the key topics he will discuss at the BRICS Leaders Summit in August, and he also plans to bring this topic to the next G20 summit.
Previously, Lula had repeatedly expressed her desire to break free from dependence on the US dollar in international trade settlements. In January of this year, Lula and Argentine President Fernandez jointly signed an article stating that the two countries have decided to advance discussions on a common currency in South America. On May 29th, Lula met with Venezuelan President Maduro during his visit to Brazil and expressed his expectation for a regional currency that could replace the US dollar between Brazil and Venezuela, so that both sides could trade without relying on the US dollar. On May 30th, at the South American Leaders Summit, Lula once again proposed the establishment of a South American common currency to seek autonomy in economic and trade among South American countries.