{"id":19815,"date":"2023-04-13T17:46:36","date_gmt":"2023-04-13T17:46:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/brazils-president-lula-urges-developing-countries-to-abandon-dollar-as-global-reserve-currency-economics-bitcoin-news\/"},"modified":"2023-04-13T17:46:36","modified_gmt":"2023-04-13T17:46:36","slug":"brazils-president-lula-urges-developing-countries-to-abandon-dollar-as-global-reserve-currency-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/brazils-president-lula-urges-developing-countries-to-abandon-dollar-as-global-reserve-currency-economics-bitcoin-news\/","title":{"rendered":"Brazil’s President Lula Urges Developing Countries to Abandon Dollar as Global Reserve Currency \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

According to Brazil\u2019s president Luiz In\u00e1cio Lula da Silva, developing countries should abandon the U.S. dollar and strengthen their own national currencies. During a speech at the New Development Bank in Shanghai, Lula expressed his nightly pondering: \u201cWhy do all countries have to base their trade on the dollar?\u201d<\/strong><\/p>\n

Brazil\u2019s President Wants to Reduce the U.S. Dollar\u2019s Global Dominance<\/h2>\n

Recent discussions have focused on removing the U.S. dollar\u2019s status as the global reserve currency, and this idea is becoming more of a reality in 2023. Speaking at the New Development Bank in Shanghai, also known as the \u2018BRICS Bank,\u2019 President Lula insisted that the greenback\u2019s global dominance should end, as reported<\/a> by the Financial Times.<\/p>\n

\u201cWho decided that our currencies were weak or valueless in other countries?\u201d Lula questioned during his speech. \u201cWhy can\u2019t a bank like that of the BRICS have a currency to finance trade relations between Brazil and China or Brazil and other countries? It\u2019s difficult because we are unaccustomed [to the thought]. Everyone depends on just one currency,\u201d he added.<\/p>\n

Lula\u2019s statements come after China signed<\/a> a new deal with Brazil and completed its first Liquefied Natural Gas (LNG) payment in yuan. Russia has also been committed<\/a> to settling trades using other countries\u2019 currencies. Moreover, BRICS members (Brazil, Russia, India, China, and South Africa) are working towards<\/a> creating a new BRICS-based reserve currency. In Shanghai, Lula voiced his curiosity about the world\u2019s dependence on the greenback.<\/p>\n

\u201cI ask myself every night why all countries have to base their trade on the dollar,\u201d Lula emphasized. \u201cWhy can\u2019t we trade using our own currencies? Who decided that the dollar would be the dominant currency after the gold standard disappeared?\u201d he inquired.<\/p>\n

Financial Times reporters Joe Leahy and Hudson Lockett concluded their report on Lula\u2019s statements by noting that any efforts to undermine the U.S. currency \u201cin the near term will face a substantial challenge.\u201d They highlighted that Brazilian miners regularly engage in dollar-denominated trades. However, officials from Brazil and the BRICS nations are not alone in discussing the potential decline of the dollar\u2019s dominance.<\/p>\n

The Philippines\u2019 central bank governor, Felipe Medalla, recently mentioned<\/a> in an interview that the greenback\u2019s prominence will gradually diminish. \u201cWe want a multi-currency world, but so far, other currencies do not have the necessary international markets to support [it]. This is the advantage of the U.S. dollar \u2013 there\u2019s a vast market for government securities,\u201d Medalla stated. \u201cI think over time, the dollar will be less and less dominant, but it\u2019s happening very slowly,\u201d he added.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
Brazil<\/a>, BRICS Bank<\/a>, central bank governor<\/a>, Challenges<\/a>, China<\/a>, currencies<\/a>, decline<\/a>, dependence<\/a>, Developing Countries<\/a>, discussions<\/a>, Dominance<\/a>, Felipe Medalla<\/a>, financial systems<\/a>, financial times<\/a>, Global Economy<\/a>, global reserve currency<\/a>, Gold Standard<\/a>, government securities<\/a>, Greenback<\/a>, Hudson Lockett<\/a>, India<\/a>, international markets<\/a>, Joe Leahy<\/a>, liquefied natural gas<\/a>, LNG<\/a>, multi-currency world<\/a>, national currencies<\/a>, New Development Bank<\/a>, obstacles<\/a>, payment<\/a>, Philippine<\/a>, President Lula<\/a>, reporters<\/a>, reserve currency<\/a>, Russia<\/a>, Shanghai<\/a>, South Africa<\/a>, trade<\/a>, Trades<\/a>, US Dollar<\/a>, Yuan<\/a><\/div>\n<\/div>\n

\u200b\u200bDo you think a shift away from the U.S. dollar as the global reserve currency is inevitable, and what impact do you believe this would have on the global economy and financial systems? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n