General

On the 23rd local time, when attending the new global financing compact summit in Paris, France, Brazilian President Lula said it was necessary to use a new currency for settlement in international trade.

Lula said that an alternative currency should be created so that countries involved in commercial transactions can not rely on the US dollar without the participation of the United States.

"When I say that we need to create a new currency in the new international trade, some people will be afraid. I don't know why Brazil and Argentina must trade in US dollars, why can't we trade in our currency? Why do I have to buy US dollars?" Lula said. Lula said that the use of domestic currency for international trade settlement will be one of the topics he will focus on at the next BRICs summit and the next G20 summit.

Since taking office as president of Brazil in January this year, Lula has expressed the position that international trade should be de dollarized on many international occasions. When meeting with Venezuelan President Maduro on May 29, Lula said that he dreamed that there was another currency other than US dollars between the two countries, so that the two sides could trade without relying on US dollars. At the South American leaders' meeting on May 30, Lula once again proposed de dollarization and the establishment of a common currency in South America to seek the autonomy of South American countries in international trade and economy.