Brazil’s President Luiz Inacio Lula da Silva’s top foreign policy adviser, Celso Amorim, asserts that China and Brazil “are coming closer together” and they could be influential in developing a more decentralized world with no hegemony. On the subject of de-dollarization, he stated: “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 ‘Getting Closer’
Brazilian President Luiz Inacio Lula da Silva’s chief foreign policy aide, Celso Amorim, discussed de-dollarization in an interview with the Chinese government-owned Global Times. Amorim previously served as Brazil’s Minister of Foreign Affairs, Minister of Defence, and ambassador to the United Kingdom. He was appointed as Chief Advisor to the president of Brazil by Lula in January.
Amorim discussed the importance of Lula’s visit to China where the Brazilian president met with Chinese President Xi Jinping. It was the first visit Lula made outside the American continent after assuming office on Jan. 1. The former Minister of Foreign Affairs mentioned:
Brazil and China are getting closer together.
China and Brazil have agreed to conduct trade in their own currencies, instead of using the U.S. dollar. Moreover, both countries are part of the BRICS group that is reportedly working to introduce a new currency to further reduce their reliance on the USD. The BRICS countries consist of Brazil, Russia, India, China, and South Africa.
De-Dollarization
On de-dollarization, Amorim expressed: “I think it’s natural that we can do our own trade in our own currencies … It’s only natural because the dollar has become dominant after WWII; before it was the English pound … So now, 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 is “not yet totally clear” whether the BRICS nations will adopt a shared currency or keep their respective national currencies, the Brazilian president’s adviser stated:
But I think it’s very important that we are free from the dominance of one single currency, because sometimes it is used politically.
Multiple 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 instance, said the Treasury Department is the USD’s biggest threat because it has “weaponized the dollar” and “frozen the reserves of the Central Bank of Russia.” Investment manager Larry Lepard foretold that the USD could lose most of its value in five years. Economist Nouriel Roubini said the global reserve currency system is transitioning from unipolar to bipolar with the Chinese yuan as an alternate to the U.S. dollar.
Creating Multipolar World With Less Centralized Power, No Hegemony
The foreign policy adviser to Lula also told the Chinese news outlet that the Brazilian president’s visit to China is an extension of an existing strategic alliance 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, adding:
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 significant roles.
Amorim further said that Brazil is eager to improve its strategic relationship with China, noting that he believes Lula’s visit will enhance the relations between Brazil and China to a new level. The Brazilian president’s adviser also urged developing nations to cooperate more closely. President Lula recently called on emerging countries to abandon the U.S. dollar as the world’s reserve currency.
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