Lula says Brics currency should reduce vulnerabilities

Speaking at the extended plenary of the 15th Brics Summit on Wednesday (Aug. 23), Brazilian President Luiz Inácio Lula da Silva said the creation of a common trading currency for bloc members would slash the vulnerabilities facing these nations. In addition to Brazil, the group includes China, India, Russia, and South Africa—the host of this year’s gathering.

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“The creation of a currency for commercial transactions and investments between Brics members improves our payment conditions and reduces our vulnerabilities,” the president said, adding that the interest of other countries in joining the bloc demonstrates its growing relevance.

Global financing

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Lula criticized current global financing models, which he described as detrimental to developing countries, stressing that the bloc’s New Development Bank (NDB) can offer alternatives better suited to the needs of the countries of the South.

“It is unacceptable that developing countries are penalized with interest rates up to eight times higher than those charged from rich countries. We need to increase liquidity, expand concessional financing and put an end to [unreasonable] conditions. The multilateral trade system must be revived in order to act once again as a tool for fair, predictable, equitable, and non-discriminatory trade. The de-carbonization of our economies must come alongside the creation of decent jobs, green industrialization and infrastructure, and public services for everyone,” President Lula declared.