Beijing: A day after criticising the influence of the US dollar and the IMF, Brazilian President Luiz Inacio Lula da Silva is expected to forge closer ties with Chinese President Xi Jinping during a meeting in Beijing on Friday.
The veteran leftist is in China to strengthen ties with his nation's top trading partner and spread his message that "Brazil is back" as an important player on the world stage. His government recently announced a deal with Beijing to trade in their own currencies instead of using the dollar as an intermediary.
At a red-carpet ceremony outside Beijing's Great Hall of the People on Friday afternoon, where a military band played the national anthems of China and Brazil, he was welcomed by President Xi. Later in the day, the two were scheduled to meet and talk.
Also Read: Pilots from Belarus were given nuclear weapons training by Russia
Lula earlier attacked the US dollar for being used in almost all international trade transactions.
"Who decided that the dollar would be the (world's) currency?" At a ceremony in Shanghai to inaugurate his political ally Dilma Rousseff as head of the development bank established by the BRICS countries—Brazil, Russia, India, China, and South Africa—Lula made the statement.
Why is it impossible for a bank like the BRICS bank to issue its own currency to support trade between Brazil and China and with the other BRICS nations?Today, nations must seek out dollars in order to export when they could instead export in their own currencies.
Lula also had harsh words for the IMF, implying that in exchange for bailout loans, the IMF imposes excessively severe spending cuts on cash-strapped nations like Brazil's neighbour Argentina.
Also Read: Modi government has brought India to the top, leading the top 21 countries
"No bank should be asphyxiating countries' economies the way the IMF is doing now with Argentina, or the way they did with Brazil for a long time and every third-world country," the speaker said.
No leader can function while holding a knife to their throat due to a debt to their nation.
After four years of relative isolation under his far-right predecessor, Jair Bolsonaro, Lula, who took office in January, is seeking to reposition Brazil as a global go-between and deal broker, seeking to build friendly relations with everyone.
Prior to meeting with Chinese Premier Li Qiang, the Brazilian leader took part in a wreath-laying ceremony at the Monument to the People's Heroes in Tiananmen Square.
Brazil has returned. In Shanghai, where he arrived on Wednesday night, Lula made a promise.
"The era when Brazil didn't participate in important global decisions is over. After an illogical absence, we are back on the global stage. The Ukraine war is anticipated to be one of the main topics discussed when Lula and Xi meet.
Brazil has positioned itself as a peace broker in the conflict, and China is being pushed to step up its efforts. There are worries in the West that they both have a cosy relationship with Vladimir Putin, the president of Russia.
Both nations have declined to support the imposition of sanctions against Russia for its invasion by Western countries. The Shanghai portion of Lula's trip brought to light another important objective of the trip: strengthening trade ties between the Asian superpower and the largest economy in Latin America.
Brazil's largest export destination is China, which pays tens of billions of dollars for soybeans, beef, and iron ore. In accordance with the currency agreement announced in March, Brazil and China have designated two banks, one in each nation, to carry out their extensive financial and trade transactions by directly converting yuan into reais and vice versa rather than using dollars.
Also Read: In Russian weapons Ukraine claims to be discovering more Chinese components
China has agreements akin to this with Pakistan, Russia, and a number of other nations. From 2003 to 2010, Lula presided over Brazil. In February, he paid a visit to Joe Biden, the US president. After ties with China deteriorated under Bolsonaro, he is now attempting to improve relations with the country.
Originally slated to travel in late March, the 77-year-old president was forced to postpone it due to pneumonia. About 40 high-ranking officials, including cabinet ministers, governors, and members of Congress, are travelling with him as part of a sizable delegation.