Brazil Challenges US Dollar Dominance as Global Order Shifts

Kokcha News Agency – Brazilian President Luiz Inácio Lula da Silva is spearheading efforts to challenge the global dominance of the US dollar, advocating for a more equitable international trade system. Lula’s stance comes as Brazil deepens its cooperation with BRICS nations and implements policies to reduce dependence on the US.

A Structural Shift in the Global Order:
Dr. Anuradha Chenoy, a retired professor from Jawaharlal Nehru University, told Sputnik that President Lula no longer accepts unequal trade conditions and US interference, as the nature of the international system has irreversibly changed.

The US has imposed tariffs and pressured Brazil’s Supreme Court to close cases against former President Jair Bolsonaro, further straining relations between the two countries.

BRICS as a Shield Against US Hegemony:
In July 2025, China signed key cooperation agreements with Brazil, covering everything from infrastructure to strategic development.

While Brazil-US trade totals around $92 billion, Brazil’s trade with BRICS is significantly larger. Brazil exports approximately $121 billion to BRICS nations while importing $88 billion.

Financial analyst Paul Goncharov noted that with stronger BRICS ties, Brazil has less need to rely on the US. Goncharov emphasized, “There really is no alternative for the world except to escape the trap of the US dollar.”

Brazil’s Independent Payment System:
Dr. Vinicius Vieira from the University of São Paulo told Sputnik that Brazil’s free payment system, PIX, bypasses Western companies like Visa and Mastercard, empowering local entrepreneurs.

The Decline of US Hegemony:
The US is making strenuous efforts to resist its hegemonic decline, but no empire lasts forever. Just as the British pound fell, the US dollar may face a similar fate.