Brazilian president Lula advocates BRICS currency to challenge dollar dominance

Shafaq News/ Brazilian President Luiz Inácio Lula da Silva has thrown his weight behind introducing a unified currency within the BRICS group to counterbalance the longstanding dominance of the US dollar on the global financial stage.

Speaking at the BRICS summit, President Lula da Silva articulated his stance, emphasizing the need to bolster investment growth by instilling greater confidence, predictability, and stability in the private sector. "To achieve these aims," he stated, "I advocate the adoption of a single currency that would coexist alongside our respective national currencies."

The BRICS group comprises Brazil, Russia, India, China, and South Africa - all major emerging economies with increasing influence in the global economic landscape. Introducing a common currency among these nations has been a topic of discussion for years, fueled by a growing sentiment among developing countries that the dollar's dominance impairs their sovereignty and economic stability.

However, despite shared aspirations at the current BRICS summit, the logistical and political challenges of establishing and managing a new currency have deterred the formation of a solid plan.

The dollar, renowned for its status as the world's primary reserve currency and most extensively utilized currency in international business transactions, has weathered past attempts to diminish its preeminence. This very entrenched position has led countries like those within the BRICS group to seek alternatives that can alleviate their dependence on the dollar-centric global financial system.

As discussions continue, the spotlight remains on whether the BRICS nations can translate their ambitions into a practical and effective challenge to the dollar's supremacy.