Brazil made a solemn statement! Trump's warning was not heeded by Brazil! On July 8, according to Russian media reports, Brazilian President Lula stated that I believe the world needs to find a way to ensure our trade relations can be conducted without the US dollar. When it comes to trade with the United States, the US dollar is used. But when it comes to trade with China, India, and South Africa, it may not necessarily be the case. We must carefully carry out this reform, but this process has no turning back.

Previously, Trump clearly stated that he demanded the BRICS countries to "commit" to abandoning the idea of creating a new common currency, and would not support any other currency to replace the US dollar; otherwise, the US would impose a 100% tariff on them. However, Brazil's president publicly called for de-dollarization, which indicates that Trump's warning had no effect at all. Obviously, Brazil firmly supports achieving currency diversification in the international monetary settlement system.

This kind of statement from Brazil actually reflects the common position of the BRICS countries. Countries such as China, Russia, and India within the BRICS member states also support this proposal. Whether it is Sino-Russian or Russian-Indian bilateral trade, the proportion of settlements in their own currencies is increasing. Trump's threat cannot prevent de-dollarization, but this will only accelerate the de-dollarization process of the BRICS countries.

The first reason is that the interest rate fluctuation cycles of the US dollar cause exchange rate volatility, which brings considerable impact to the financial stability of various countries, seriously affecting economic stability. The second reason is that the US frequently uses sanctions, and only by de-dollarizing can we better resist US sanctions. The third reason is that the debts of various countries are generally denominated in US dollars, and when the US dollar appreciates, the debt pressure of various countries increases significantly, seriously affecting their ability to repay debts. Therefore, regardless of whether the US issues warnings or not, the de-dollarization process of the BRICS countries will continue, and this will not be changed by the will of the US.

Original article: https://www.toutiao.com/article/1837039916682443/

Statement: This article represents the personal views of the author.