Recent reports indicate that the newly appointed president of Brazil is advocating for the BRICS nations to proceed with their plan to replace the US dollar as the leading global currency.
Brazil’s new president addresses the US dollar’s decay
Reports from Nikkei state that Brazilian President Luiz Inácio Lula da Silva has proposed the idea of the BRICS nations exploring the possibility of creating a common currency to serve as an alternative to the US dollar in the global market.
During a press conference following his attendance at the G7 meeting in Hiroshima, President Lula proposed the creation of a global currency. He reasoned that such a currency would offer substantial benefits for the entire group.
Lula has reported that Brazil is strengthening economic relations with China and aims to establish a shared BRICS currency.
The topic at hand is the currency of the ICS. These views differ from the objectives of the G7 nations, which are centered on reducing risk while maintaining ties with China. President Lula has shown support for a BRICS currency in the past and has recently made additional comments on the matter.
“Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries? Who decided that the dollar was the [trade] currency after the end of gold parity?”
“Is the era of gold parity coming to an end?”
The leaders of BRICS nations have offered differing perspectives regarding the feasibility of a unified currency, based on their individual viewpoints.
CBDCs are on their way to the US
A recent paper about central bank digital currencies (CBDCs) was a collaborative effort by several international groups, such as the Fed, Bank of Japan, European Central Bank, and the Bank of England.
The paper covers various aspects like the potential implementation and policy questions surrounding CBDCs. This is the latest addition to a series of reports that date back to 2020.