Brazil’s Finance Minister Fernando Haddad has sharply criticized Washington’s attempts to pressure BRICS nations over currency choices, insisting that the bloc has the right to uphold trade in local currencies. In an interview with UOL, Haddad accused the White House of “weaponizing the US dollar,” warning that such practices risk undermining its global dominance.
“The US has no right to prevent other countries from using their local currencies they deem fit,” Haddad said. “That doesn’t make sense. If we can make our transactions cheaper, why would we make them more expensive?”
According to the minister, conducting trade in local currencies makes transactions significantly cheaper, as foreign exchange costs are reduced. He emphasized that this strategy not only supports domestic businesses but also strengthens national currencies on the forex markets, contributing to more resilient GDP growth across BRICS economies.
Haddad acknowledged that the US dollar will likely remain the world’s reserve currency, but argued that Washington’s policy missteps could accelerate its decline.
“Another thing is this issue of turning the dollar into a weapon of war, like what happened against Russia. So, this is what is weakening it,” he explained.
The comments follow a series of tariffs imposed by former US President Donald Trump on BRICS nations, aimed at discouraging their shift away from the dollar. Haddad, however, noted that such trade wars are temporary and tied to political cycles.
BRICS leaders are now exploring mechanisms to make local currencies central to cross-border settlements. Analysts see this as part of a broader push toward a multipolar financial order, where a basket of currencies could gradually reduce the dollar’s de facto dominance in global trade.
