China and Brazil can be fundamental in building a less centralized world without hegemony, says Lula’s adviser Criptomonedas e ICOs

Brazil’s President Luiz Inácio Lula da Silva’s top foreign policy adviser, Celso Amorim, says China and Brazil “are getting closer” and could play an important role in building a less centralized world without hegemony. Commenting on de-dollarization, he emphasized: “I think it’s very important that we be free from the dominance of a single currency because it is sometimes used politically.”

Brazil and China “get closer”

Brazilian President Luiz Inacio Lula da Silva’s senior foreign policy adviser Celso Amorim discussed de-dollarization on Friday in an interview with the Chinese government-owned Global Times. Amorim previously served as Brazil’s Foreign Minister, Defense Minister and Ambassador to the United Kingdom. He was named Senior Advisor to the Brazilian President by Lula in January.

Amorim explained the importance of Lula’s visit to China where the Brazilian president met with Chinese president Xi Jinping. It was Lula’s first visit outside the American continent after taking office on January 1. The former Foreign Minister said:

Brazil and China are getting closer.

China and Brazil have agreed to trade in their respective currencies, instead of using the US dollar. Also, both countries are part of the BRICS group which is reportedly working to create a new form of currency that will further move them away from reliance on the USD. The BRICS countries are Brazil, Russia, India, China and South Africa.

de-dollarization

Regarding de-dollarization, Amorim opined: “I think it is natural that we can do our own trade in our own currencies… It is natural because the dollar became dominant after World War II; before it was sterling… So now if we can work with a basket of currencies and use our own currencies to a large extent, that’s the best thing.”

While conceding that it is “still not entirely clear” whether the BRICS nations will adopt a common currency or maintain their respective national currencies, the adviser to the Brazilian president emphasized:

But I think it’s very important that we’re free from the dominance of a single currency, because sometimes it’s used politically.

Several people have warned that the US dollar may lose its status as the world’s reserve currency due to the government weaponizing it. Economist Jim Rickards, for example, said that the Treasury Department is the biggest threat to the USD because it has “armed the dollar” and “frozen the reserves of the Central Bank of Russia.” Investment manager Larry Lepard predicted that the USD could lose most of its value in five years. Economist Nouriel Roubini said the world’s reserve currency system is shifting from unipolar to bipolar with the Chinese yuan an alternative to the US dollar.

Creating a multipolar world with less centralized power, without hegemony

Lula’s foreign policy adviser also told the Chinese media that the Brazilian president’s visit to China is an expansion of an already existing strategic partnership between the two countries. “China is our most important trading partner by far. Brazil is becoming one of the places where China invests the most,” he said, emphasizing:

But not only that, I believe that the two countries can also play an important role in building a more multipolar world, in which power is less centralized and there is no hegemony. I think this is a very important aspect in which China and Brazil can play an important role.

Amorim further stressed that Brazil is eager to enhance its strategic cooperation with China, noting that he believes Lula’s visit will lift Brazil-China relations to a new level. The adviser to the Brazilian president also urged developing countries to cooperate more closely. President Lula recently urged developing nations to get rid of the US dollar as the world’s reserve currency.

Do you think the US dollar is at risk of losing its status as the world’s reserve currency? Let us know in the comments section.

kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.