Brazilian President Luiz Inacio Lula da Silva has said India and Brazil can trade in their own currencies and do not need to rely on the US dollar for bilateral deals but cautioned that any shift away from the dollar-dominated global system will take time and careful planning.
In an exclusive interview with India Today TV, Lula said there is “no fantasy” about de-dollarisation, but stressed that countries like India and Brazil must begin asking whether every trade agreement needs to be denominated in US dollars.
“It is not necessary that a trade agreement between India and Brazil has to be done with US dollars. We can use our own currencies. It is difficult, but we can try,” Lula said. “No one has to rely on the dollar, but you cannot undo this system overnight.”
He acknowledged that the US naturally wishes to protect the global dominance of the dollar. “Obviously I understand the reasons of the Americans. The dollar is the world’s strongest currency, and they don’t want other currencies to rise. We have to take that into account.”
‘No BRICS currency proposal on the table’
Lula pushed back against global speculation that BRICS is working on a common currency or planning an alternative to the dollar. He clarified that there has been no proposal, no draft, and no internal discussion to create a “BRICS currency.”
“No one proposed to create the BRICS currency. There is no debate within BRICS to create a new currency,” he said, calling the narrative “misunderstood”.
However, he reiterated that BRICS countries should increase local-currency trade wherever possible, saying the choice is simple: “Do we need the dollar every time? Or can Brazil and India trade using our own currencies? Everybody has to think about that and decide what is best.”
BRICS as a force of the Global South
Lula described BRICS as one of the most important global groupings formed in the last three decades, a coalition that represents the voices and interests of the Global South.
“The BRICS represents the Global South. India and China alone carry half the world’s population. More than half of humanity is participating in BRICS,” he said.
He highlighted that Brazil does not want a world divided into geopolitical blocs. “We don’t want a second war. We don’t want a cold war between China and the US. Brazil wants to trade with all countries.”
Calling himself a strong advocate of multilateralism, he said BRICS embodies hope for a more balanced world order. “BRICS will strengthen itself and will make the right decisions,” he added.
India–Brazil trade can touch $30–40 billion
Lula said the next phase of India–Brazil relations must focus on scaling up trade. “We need to get to 30–40 billion dollars of trade with India,” he said.
He praised India’s technological ecosystem, saying Brazil has much to learn. “India has a lot to teach us and we want to learn,” he said, adding that Brazil also offers a massive consumer market that Indian companies can tap into.
In a significant announcement, Lula said Brazilian aircraft manufacturer Embraer will open a manufacturing plant in India, as Brazil cannot rely solely on US or Chinese supply chains.
‘When our economies grow, trade grows’
Lula said the future of India–Brazil relations lies in economic expansion on both sides. “We want our economies to grow. When they grow, trade will also grow and it will benefit both India and Brazil.”
