Brazilian President Luiz Inacio Lula da Silva criticized the role of the US dollar in the global economy and the International Monetary Fund (IMF) during his official visit to China.
Lula’s government recently signed a currency trade agreement with China, ditching the dollar as an intermediary, indicating the two countries’ desire to broaden trading ties whilst moving away from dollar reliance.
Lula also criticized the IMF, accusing the organisation of forcing harsh spending cuts on cash-strapped countries in exchange for bailout loans, such as Argentina and Brazil.
During his visit, Lula seeks to reposition Brazil as a global intermediary and deal broker. He plans to meet with Chinese and US top officials to further promote Brazil’s global position.
Lula’s visit is expected to highlight deepening trade ties between China and Brazil, aiming to directly exchange their currencies, using the yuan and reais banking system for massive trade exchanges.