Breaking: Brazil President Proposes To Ditch US Dollar For Another Currency

Coingapestaff
May 30, 2023 Updated May 16, 2025
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In the face of mounting challenges such as soaring debt, interest rate hikes, inflation, and brewing uncertainty in the financial markets, the United States is witnessing a decline in the prominence of its once-mighty dollar. As the US struggles to regain stability, the BRICS nations—Brazil, Russia, India, China, and South Africa—have been actively seeking alternatives to reduce their dependency on the faltering US dollar.

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Brazil Suggests Ditching USD

China, one of the leading economies within the BRICS group, has already engaged in discussions about conducting trade using their respective national currencies. Likewise, Brazil’s President, Luiz Lula da Silva, has acknowledged the need to harness a currency other than the US dollar.

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Speaking about the importance of regional cooperation, Lula emphasized the necessity for South American countries to work together as a bloc to tackle poverty. He also expressed willingness to consider requests from various countries to join the bloc during the upcoming BRICS summit.

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Growing Disparity With USD

In fact, Lula’s vision of trading in currencies other than the US dollar appears to be within reach. In April, he expressed his support for the creation of a new currency specifically for trade between BRICS countries. Moreover, according to recent reports, the BRICS nations have been actively exploring the possibility of developing such a currency, marking a significant shift away from the US dollar-dominated international financial system.

Countries like China, Russia, and Iran have drastically reduced their reliance on the US currency in recent months. To reduce risks related to the dollar’s falling value, these countries are diversifying their foreign exchange reserves and looking into utilizing their regional or a stronger currency like China’s Yuan as means of payment.

President Lula’s “dream of a trading currency other than dollar” promises to be a significant milestone in determining the nation’s future direction. As the countries consider creating a new currency for intra-trade and commerce, the BRICS nations could potentially challenge the prevailing dominance of the US dollar, thereby reshaping the global financial order.

Also Read: On-chain Data Shows Bitcoin Price Move Past $28k Resistance

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.