Brazil says BRICS has right to 'move away' from USD, not hesitating to raise tariffs with US; two more countries 'join hands' to use local currencies

Brazilian President Lula da Silva affirmed that the BRICS group of leading emerging economies has the right to seek alternatives to the US dollar in international trade.

Brazil has expressed concern that its dependence on the US dollar is creating trade barriers. (Source: iStock)

Speaking to the press, the Brazilian leader emphasized: "The use of the USD as a global transaction currency is not a decision of the international community but imposed by the US."

He pointed out that BRICS - representing nearly half of the world's population and global trade - has every right to seek alternatives.

Giving a stern warning that Brazil would apply the principle of "reciprocity" if the US imposed tariff sanctions, President Lula da Silva declared: "We will not hesitate to adjust the tax up to 35% according to World Trade Organization (WTO) regulations if necessary."

The Brazilian leader also expressed concern that dependence on the US dollar is creating trade barriers and limiting the financial sovereignty of developing countries.

He called on the international community to restore global harmony and enhance dialogue, stressing the importance of "harmony" in international diplomatic relations.

*Meanwhile, the Jakarta Globe reported that last year, Bank Indonesia and the Reserve Bank of India signed a memorandum of understanding (MoU) on local currency payments.

The agreement will allow exporters and importers to pay in Rupiah or Rupee, thus eliminating the need to use the US dollar as an intermediary.

In late January 2025, Indian Prime Minister Narendra Modi welcomed Indonesian President Prabowo Subianto on his first state visit to New Delhi.

A joint statement issued after the meeting said: "Both leaders stressed the importance of the rapid implementation of the use of local currencies.

The two sides expressed confidence that the use of local currencies in bilateral transactions will further promote trade between Indonesia and India, and at the same time, deepen financial integration between the two economies.

Besides, New Delhi welcomes Jakarta's BRICS membership.

Meanwhile, Indonesia believes that its membership in BRICS can further strengthen the bloc's unity.

Source: https://baoquocte.vn/brazil-noi-brics-co-quyen-roi-xa-usd-khong-ngan-ngai-tang-thue-quan-voi-my-them-hai-nuoc-bat-tay-su-dung-dong-noi-te-303371.html