Can BRICS Reduce Dollar Dependence? Lula’s Gradual Shift To Local Currencies For Fairer Trade

Addressing the question of de-dollarisation, Luiz Inácio Lula da Silva offers a measured and pragmatic view on the future of global trade within BRICS. Rather than calling for an abrupt end to the dominance of the US dollar, Lula advocates for gradual exploration of trade in national currencies between partner countries. He argues that trade agreements between nations such as Brazil and India need not always rely on the dollar, suggesting that local currency settlements could be mutually beneficial. However, he acknowledges the complexity of unwinding a system built around the dollar’s global reserve status and says such changes cannot happen overnight. Lula also points to earlier efforts to expand trade in local currencies with Argentina, framing de-dollarisation not as a political confrontation but as an economic discussion about what best serves national interests. While recognising US concerns about protecting the dollar’s strength, he maintains that innovation in trade mechanisms could improve living standards and offer emerging economies greater flexibility in global commerce.