Lula proposes a common currency and parking the dollar for exchanges in Latin America

2023-05-30 19:47:15

Luiz Inacio Lula da Silva want to relocate Brazil in the center of gravity of regional politics and under this impulse he proposed this Tuesday at a meeting of South American countries the creation of a common currency for commercial purposes. Lula did nothing more than repeat to her colleagues the questioning of the predominance of dollar in financial transactions. According to the Brazilian president, the existence of “a common reference unit for trade” would reduce “the dependence on extra-regional currencies” and, at the same time, would contribute to “deepen the South American identity also in the monetary area”. Lula had already sketched that horizon at the end of January, when he visited Argentina. On that occasion had considered that Brazil and its main trading partner in Latin America they had to take the initial step and then include the other countries.

According to the host of the summit that was held in Brasilia, it is not a question of changing the currencies in common use in the countries, but of instituting a new one for the payment of imports and exports. For Lula, this initiative goes hand in hand with her desire to give new life to the South American Union of Nations (Unasur), deactivated during the years that the right ruled in Brazil and Argentina, its historical promoters. Unlike what happened years ago, during his two previous presidencies, the Brazilian has remarked that the interests that unite the countries of the subcontinent “They are above ideological differences“.

The Brasilia event has been thought of by its organizers as a “retreat” of presidents that enables discussion without conditions. Alberto Fernández (Argentina), Luis Arce (Bolivia), Gabriel Boric (Chile), Gustavo Petro (Colombia), Guillermo Lasso (Ecuador), Irfaan Ali (Guyana), Mario Abdo Benítez (Paraguay), Chan Santokhi (Suriname), participated. Luis Lacalle Pou (Uruguay) and Nicolás Maduro (Venezuela). Dina Boluarte was not authorized to leave Peru by Congress.

The Unasur factor

Unasur was launched in 2008. At that time, Lula, Cristina Kirchner and Hugo Chávez they formed a political axis that later incorporated Evo Morales and Michelle Bachelet, the presidents of Bolivia and Chile. Shifts to the right in each of those countries turned that forum that sought relative autonomy from the United States into a rubber stamp. In fact, during the years of Donald Trump in the White House, the Lima Group, in order to serve as regional pressure on the Venezuelan issue.

As Néstor Kirchner said, the old molds have been broken and new problems require new solutions.

I welcome the initiative of the President of Brazil, @LulaOficialto promote this meeting that unites the presidents of South America to integrate the region. https://t.co/ZWLbBqnbZT

– Alberto Fernandez (@alferdez) May 30, 2023

For Lula, it is time to resume the path left behind. “Let’s remember that (Unasur) is in force. Seven countries remain full members. It is important to resume its construction process”, he asked without nostalgia for the past. In his opinion, it is necessary to “critically evaluate what did not work and take these lessons into account”. The regional mechanism must be “flexible” and with “efficiency in the execution” of the projects.

As part of those objectives, he called on the coordinated action to combat the climate crisis and to create a South American energy market. He was also in favor of the resumption of cooperation in the area of ​​Defense. “We need to form a block to work together, in economic, investment, environmental issues. It is not difficult, because we have more or less the same problems,” said Lula, who in turn stressed the need for shared criteria in defense of democratic institutions. Not in vain did he refer to the coup attempt that took place in Brazil last January 8, when the Brazilians witnessed “a tragic synthesis of the violence of extremist groupswho use digital platforms to promote disinformation campaigns and hate speech”.

????????@LuisLacallePou ????????@NicolasMaduro ????????@AlbertoOtarolaP

????: @ricardostuckert pic.twitter.com/Q3tCdxOesA

— Lula (@LulaOficial) May 30, 2023

Criticism for the reception of Maduro

Maduro’s presence in Brazil had an impact on the meeting and, moreover, sparked a foreseeable internal controversy. Uruguayan President Luis Alberto Lacalle Pou objected to the reasoning of Lula himself, who had spoken on Monday of a “narrative” on the political situation in Venezuela. “I was surprised when it was said that what happens in Venezuela is a narrative. They already know what we think of Venezuela and the Venezuelan government.” For Lacalle Pou, “if there are so many groups in the world trying to mediate so that democracy is full in Venezuela, so that human rights are respected, so that there are no prisoners politicians, the worst thing we can do is cover the sun with our hand”.

According to Bruno Boghossian, a columnist for Sheet of Saint Paul,”Maduro’s acquittal is a false diplomatic shortcut by Lula.” He noted in this regard that the president “was more generous” with his Venezuelan colleague than when he was a candidate last year. “In the campaign, The petista complained about the sanctions imposed on the Venezuelan regime, but he dribbled the dictator’s criticism by recognizing the benefits of alternating power.”. Upon receiving Maduro, he “painted” him as a “victim” of “a narrative.”

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The eldest son of the retired captain, Senator Flavio Bolsonaroconsidered while Lula “demonstrates, once again, his lack of commitment to democracy by receiving the dictator of Venezuela, Nicolás Maduro, accused of crimes against humanity, such as murders, torture, assaults, sexual violence and disappearances”.

The objections did not only come from the extreme right. Oliver Stuenkel, professor of International Relations at the Getulio Vargas GV-SP Foundation and columnist for the São Paulo newspaper state said “Lula’s incredible fawning rhetoric towards Maduro –whose systematic repression and human rights abuses are well documented–is far more damaging to the international reputation of the Brazilian government than anything Lula has said or done to date.”