BRICS Dropping US Dollar, Working on New Reserve Currency: #Brazil's Lula | August 24, 2023:
"The #BRICS economic alliance plans to abandon the U.S. dollar in trade settlements and develop a new reserve currency while promoting the use of local currencies, Brazil's president said at the bloc's 15th annual summit in #Johannesburg, #SouthAfrica.
Brazilian President Luiz Inacio #Lula da Silva championed a medium- to long-term objective of creating a new reserve currency to fight against the U.S. dollar hegemony. Until then, the coalition will encourage the further utilization of members' national currencies in bilateral trade.
"The creation of a currency for commercial transactions and investments between BRICS members increases our payment conditions and reduces our vulnerabilities," Mr. Lula stated before the summit audience, adding that developing nations should be hit with higher interest rates than what affluent countries experience.
The best mechanism, he noted, is to bolster liquidity, increase favorable financing terms, and abolish conditionalities, suggesting that the “structural readjustment” is an indictment of the policies presented by the International Monetary Fund ( #IMF) and the #WorldBank.
"The multilateral trading system must be revitalized so that it returns to acting as a tool for fair, predictable, equitable, and non-discriminatory trade," he said."
