May 31, 2023, 8:04 PM
News ID: 85128298
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Brazil’s Lula pushes for common currency in South America

May 31, 2023, 8:04 PM
News ID: 85128298
Brazil’s Lula pushes for common currency in South America

Tehran, IRNA – Brazilian President has stressed the need for agreeing on the use of a common regional currency to replace it with the US dollar.

President Luiz Inácio Lula da Silva made the remarks during a meeting with South American heads of state in Brasilia on Tuesday as he highlighted the significance of efforts to ditch the dollar in trade throughout the world.

The single currency proposed by Lula would apply to the Mercosur trade bloc, comprised of Argentina, Brazil, Paraguay, and Uruguay, in Lula’s vision, CNN reported.

The Brazilian president also called for strengthening the South American identity in monetary policy through better compensation mechanisms and the creation of a shared unit of transaction for trading.

It is not the first time that a senior official has floated the idea of creating a common currency to replace it with the US dollar in international trade.

Earlier this month, Iranian President Ebrahim Raisi asked the Central Bank of Iran (CBI) to lay the ground for conducting foreign trade transactions using Iran's national currency rial.

In a major banking forum held in Tehran this month, Iranian Vice-President Mohammad Mokhber said that dollar domination is on the verge of collapse, noting that de-dollarization is an inevitable response of countries to a project by the the United States to weaponize its dollar. 

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