The socialist president of Brazil, Luiz Inácio Lula da Silva, has advocated the creation of a common currency between his country and China. The socialist’s idea is to undermine the use of the American dollar and promote the use of the Chinese currency, the yuan, or establish a common currency for BRICS member countries.

Lula da Silva addressed the issue on Tuesday, during a live interview in South Africa. He is in the country to participate in a BRICS summit.

Lula’s initiative is seen as a challenge to the United States, although the Brazilian government denies any intention to weaken the American economy.

For Lula da Silva, the United States is making “political use” of the dollar. He is therefore trying to attack the American currency in order to strengthen Chinese communism.

Da Silva confirmed discussions aimed at Brazil’s trade with Argentina, its main trading partner in Latin America, to adopt a new monetary reference instead of the dollar.

Lula da Silva said:

“With the crisis in Argentina, Fernando Haddad, Brazil’s finance minister, is in talks, and it’s possible that we can help Argentina by adopting the yuan from China as a currency. This is about doing something different, something more serene, more mature, and less pragmatic than the rules established today, which only benefit the financial system.

According to Da Silva, emerging countries should not remain dependent on the fluctuations of the American dollar, as many of them are struggling to acquire the currency.