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BEIJING. – Brazilian President Luiz Inacio Lula da Silva’s chief adviser on foreign policy, Celso Amorim, says China and Brazil “are coming closer together” and they could play important roles in building a less centralized world with no hegemony.
Commenting on de-dollarization, he stressed: “I think it’s very important that we are free from the dominance of one single currency because sometimes it is used politically.”
In an interview with the Global Times. Amorim explained the importance of Lula’s visit to China where the Brazilian president met with Chinese President Xi Jinping. It was the first visit Lula made outside the American continent after assuming office on January 1. The former Minister of Foreign Affairs said: “Brazil and China are coming closer together.
China and Brazil have agreed to conduct trade in their respective currencies, rather than using the US dollar. Additionally, both countries are part of the BRICS group that is reportedly working to create a new form of currency that will further shift them away from USD reliance. The BRICS countries consist of Brazil, Russia, India, China, and South Africa.
Regarding de-dollarization, Amorim opined: “I think it’s natural that we can do our own trade in our own currencies … It’s only natural because the dollar has become dominant after WWII; before it was the English pound … So now, if we can work with a basket of currencies and use our own currencies to a large extent, that’s the best thing.”
While admitting that it is “not yet totally clear” whether the BRICS nations will adopt a common currency or maintain their respective national currencies, the Brazilian president’s adviser stressed:
“But I think it’s very important that we are free from the dominance of one single currency, because sometimes it is used politically.”
A number of people have warned that the US dollar may lose its status as the world’s reserve currency due to the government weaponizing it. Economist Jim Rickards, for example, said the Treasury Department is the USD’s biggest threat because it has “weaponized the dollar” and “frozen the reserves of the Central Bank of Russia.” – Global Times
Online Reporter