Brazil’s 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.”
Brazil, China ‘ Coming Closer Together ’
Brazil’s President Luiz Inacio Lula da Silva’s chief counsel on foreign policy, Celso Amorim, says China and Brazil “ are coming closer together ” and they could play significant places in making a less centralized world with no hegemony. Commenting on de-dollarization, he stressed “ I suppose it’s very important that we are free from the dominance of one single currency because sometimes it's used politically. ”
Amorim explained the significance of Lula’s visit to China where the Brazilian president met with Chinese President Xi Jinping. It was the initial visit Lula made outside the American continent after assuming office on Jan. 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 separate currencies, rather than using the U.S. dollar. also, both countries are part of the BRICS group reportedly working to produce a new form of currency that will shift them away from USD reliance. The BRICS countries consist of Brazil, Russia, India, China, and South Africa.
De-Dollarization
Regarding de-dollarization, Amorim opined “ I suppose it’s natural that we can make our own trade in our own currencies It’s only natural because the dollar has come dominant after WWII; before it was the English pound So currently 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's “ not yet completely clear ” whether the BRICS nations will borrow a common currency or maintain their separate national currencies, the Brazilian president’s counsel 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 U.S. dollar may lose its status as the world’s reserve currency due to the government weaponizing it. Economist Jim Rickards, for example, told the Treasury Department is the USD’s biggest risk because it has “ weaponized the dollar ” and “ frozen the reserves of the Central Bank of Russia. ” Investment manager Larry Lepard predicted that the USD could lose utmost of its value in five years. Economist Nouriel Roubini said the global reserve currency system is moving from unipolar to bipolar with the Chinese yuan as an alternative to the U.S. dollar.
Creating Multipolar World With Less Centralized Power, No Hegemony
The foreign policy adviser to Lula similarly said to the Chinese news outlet that the Brazilian president’s visit to China is an expansion of a previously existing strategic partnership between the two countries. “ China is our most important trading partner by far. Brazil is becoming one of the places in which China invests more, ” he said, emphasizing:
But not only that, I think the two countries can also have an important role in building a more multipolar world, in which power is less centralized and there is no hegemony. I think this is a very important aspect in which China and Brazil can play important roles.
Amorim stressed that Brazil is eager to better its strategic cooperation with China, noting that he believes Lula’s visit will elevate the relations between Brazil and China to a new position. The Brazilian president’s adviser also urged developing countries to cooperate more nearly. President Lula newly called on developing nations to dump the U.S. dollar as the world’s reserve currency.
(Kevin Helms. Bitcoin.com, 2023)