At a 'Brics bank' event, Lula once again defends an alternative to the dollar

President Luiz Inácio Lula da Silva (PT) defended, this Friday 4, the creation of an alternative currency to the dollar for international commercial transactions.

The statement, in line with positions already expressed by other BRICS leaders , was made during the opening of the 10th Annual Conference of the National Development Bank. The event, held in Rio de Janeiro, was part of the bloc's summit program and marked Lula's first participation in an activity linked to the meeting.

“That is why your discussion about the need for a new currency is extremely important. Is it complicated? I know. There are political problems. But if we don’t find a new formula, we will end the 21st century the same way we started the 20th century. And that will not be beneficial for humanity,” he said.

In recent decades, several countries have sought ways to reduce their vulnerability to the US financial system. It is precisely this search for autonomy that helps explain the growth of initiatives such as the New Development Bank (NDB).

Criticism of fiscal austerity

In his speech, Lula criticized the austerity policies imposed by multilateral financial institutions. He believes these measures have resulted in greater impoverishment in developing countries.

“I think you can and should show the world that it is possible to create a new financing model without conditions. The austerity model has not worked in any country in the world. Every time austerity is mentioned, the poor get poorer and the rich get richer,” declared Lula.

The statement is related to the strategy adopted by the Planalto in the domestic fiscal dispute. The government has argued that its tax proposals aim to burden the upper classes to benefit the popular classes, while the opposition and part of Congress resist these changes.

The role of the NBD

At the event, as expected, Lula spoke about the NDB's initiatives, saying that the financial institution would be a viable alternative to the traditional model of international financing. According to the president, the bank operates based on equal participation among its members, without imposing conditions on beneficiary countries.

“Instead of deepening disparities, the New Development Bank bases its governance on equal voice and vote. Instead of offering programs that impose conditionalities, the NDB finances projects aligned with national priorities. Strengthening the use of local currencies has become its defining feature,” he said.

Former President Dilma Rousseff, who is president of the New Development Bank, also spoke at the event in Rio de Janeiro. She warned against the use of tariffs and sanctions as instruments of political pressure.

For her, the world “is more fragmented, more unequal and more exposed to overlapping crises, climate, economic and geopolitical crises”. “Multilateralism is under pressure”, she added.

“We have witnessed a decline in cooperation and the resurgence of unilateralism . Tariffs, sanctions and financial restrictions are being used as tools of political subordination,” she said, making an indirect reference to the radical trade policy of US President Donald Trump.