Brazilian President Luiz Inacio Lula da Silva on Tuesday called for creating a common trading currency for BRICS countries to counter U.S. dollar hegemony.
Advocating the creation of a common currency for cross-border trade between BRICS nations without affecting national currencies, Lula da Silva said at the BRICS Business Forum Leaders’ Dialogue that an alternative to the U.S. dollar needs to be found in the international market.
The common currency would be used to facilitate trade between the emerging nations, he said.
“We want BRICS to be a multilateral institution, not an exclusive club,” Lula da Silva said. “We just want to organize ourselves.”
In April, he proposed possibly creating a common regional currency or similar mechanism to reduce reliance on the U.S. dollar in trade.
Also on Tuesday, the Brazilian president announced that his government is considering the possibility of using the Chinese yuan in trade with Argentina.
“We cannot depend on a single country that has the dollar, that puts more money into circulation in dollars, and we are forced to live off the fluctuation of that currency. It’s not right,” he said.