Dilma Rousseff, president of the BRICS Bank, criticized the United States for using the dollar as a geopolitical tool and causing the devaluation of developing countries’ currencies.
Speaking at a forum in Beijing, she accused the U.S. of hindering the growth of emerging economies by pursuing containment policies, targeting Japan in the past and now focusing on China.
However, she admitted that containing China like Japan would be challenging.
Rousseff, a former president of Brazil, highlighted the advantages the U.S. gains from the dollar’s dominance, protecting American companies from currency risks while leaving others vulnerable.
She expressed concerns about the asymmetric financial system resulting from a single international reserve currency and advocated for a more diverse monetary system that includes emerging economies.
While criticizing the dollar, Rousseff did not expect another currency to replace it as a global hegemon.
Instead, she envisioned a more diversified and multipolar global monetary system driven by the increasing participation of emerging economies in global trade and capital markets.
The Chinese yuan has gained prominence in international negotiations, as with Argentina agreeing to pay part of its debt to the IMF in Chinese currency.
Indian refineries have also been allowed to pay for Russian oil imports in yuan.
The Brazilian government supports using a common reference currency within the Mercosur countries to decouple exports and imports from the dollar exchange rate fluctuations.
President Luiz Inácio Lula da Silva believes this measure will reduce costs and promote convergence while retaining national currencies.
Overall, Rousseff emphasized the importance of a balanced and inclusive global monetary system, advocating for diversification and using alternative currencies in international transactions.