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Brazil’s Lula criticises US dollar and IMF during China visit

Brazilian President Luiz Inacio Lula da Silva has criticised the US dollar’s outsized role in the global economy and the International Monetary Fund (IMF) during his official visit to China. He questioned why every country must be tied to the dollar for trade, pointing out that countries could be exporting in their own currencies. The veteran leftist is also seeking to reposition Brazil as a global go-between and deal broker after four years of relative isolation under his far-right predecessor. One of the main topics on the agenda when Lula meets with Chinese counterpart Xi Jinping is expected to be the Ukraine war. Both China and Brazil have positioned themselves as mediators in the conflict. The trip also aims to deepen trade ties between China and Latin America’s biggest economy, with China being Brazil’s biggest export market. Brazil and China have named two banks to conduct their massive trade and financial transactions by directly exchanging yuan for reais and vice versa, dropping the dollar as an intermediary. Lula previously led Brazil from 2003 to 2010 and is seeking to smooth relations with China after ties deteriorated under his predecessor, who is known for his anti-China stance.

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