Celso Amorim, chief foreign policy advisor to Brazilian President Luiz Inácio Lula da Silva, said China and Brazil are “getting closer” and can play an important role in building a world without hegemony and without centralized power. and can play an important role in building a world without hegemony and without centralization. Commenting on de-dollarization, he stressed: “I think it is very important to free ourselves from the domination of the single currency.” Because sometimes it is used politically.
Brazil and China “move closer”
Celso Amorim, senior foreign policy advisor to Brazilian President Luiz Inácio Lula da Silva, discussed de-dollarization in an interview with the Chinese government-owned Global Times on Friday. Amorim, who has previously served as Brazil’s foreign minister, defense minister, and ambassador to the U.K., was appointed by President Lula in January as Brazil’s chief presidential advisor.
Amorim explained the importance of Lula’s visit to China, where the Brazilian president met with President Xi Jinping, the first visit Lula made outside the Americas since taking office on January 1. The former foreign minister said:
Brazil and China are getting closer.
China and Brazil have agreed to trade in their respective currencies, without using the US dollar. In addition, both countries are part of the BRICS group and are reportedly working to create a new currency form to further break away from dependence on the U.S. dollar The BRICS group consists of Brazil, Russia, India, China, and South Africa.
De-dollarization
On de-dollarization, Amorim opined: “The dollar became dominant after World War II, because before that the British pound was dominant.
While admitting that it is “not yet completely clear” whether the BRICS countries will adopt a common currency or maintain their own national currencies, the Brazilian presidential advisor stressed:
But I think it is very important to be free from the dominance of the single currency. Because sometimes it can be used politically.
A number of people have warned that the U.S. dollar could lose its status as the world’s reserve currency because governments are weaponizing it. For example, economist Jim Rickards states that the Treasury Department is the biggest threat to the U.S. dollar because it has “weaponized the dollar” and “frozen the reserves of the Russian central bank.” Investment manager Larry Leppard predicted that the U.S. dollar could lose most of its value within five years. Economist Nouriel Roubini said the global reserve currency system is shifting from a unipolar to a bipolar system, and China’s renminbi is part of it.