Brazil's Lula Criticizes US Dollar and IMF during China Visit

Brazilian President Lula da Silva speaks during the inauguration of Dilma Rousseff as the head of the New Development Bank in Shanghai, on April 13, 2023. Ricardo Stuckert, Reuters
Brazilian President Lula da Silva speaks during the inauguration of Dilma Rousseff as the head of the New Development Bank in Shanghai, on April 13, 2023. Ricardo Stuckert, Reuters
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Brazil's Lula Criticizes US Dollar and IMF during China Visit

Brazilian President Lula da Silva speaks during the inauguration of Dilma Rousseff as the head of the New Development Bank in Shanghai, on April 13, 2023. Ricardo Stuckert, Reuters
Brazilian President Lula da Silva speaks during the inauguration of Dilma Rousseff as the head of the New Development Bank in Shanghai, on April 13, 2023. Ricardo Stuckert, Reuters

The two countries have recently announced a deal to trade in their own currencies, dropping the dollar as an intermediary. Lula also criticized the IMF, accusing it of 'asphyxiating' the economy of certain countries.

Brazilian President Luiz Inacio Lula da Silva criticized the outsize role of the US dollar in the world economy and lashed out at the IMF on Thursday during an official visit to China, AFP said.

The veteran leftist, whose government recently announced a deal with Beijing to trade in their own currencies – ditching the dollar as an intermediary – is in China to boost ties with his country's top trading partner and spread his message that "Brazil is back" as a key player on the global stage.

"Why should every country have to be tied to the dollar for trade?... Who decided the dollar would be the (world's) currency?" Lula said in Shanghai at a ceremony to inaugurate his political ally Dilma Rousseff as president of the development bank set up by the BRICS nations (Brazil, Russia, India, China and South Africa).

"Why can't a bank like the BRICS bank have a currency to finance trade between Brazil and China, between Brazil and other BRICS countries?... Today, countries have to chase after dollars to export, when they could be exporting in their own currencies."

Lula also had strong words for the International Monetary Fund, alluding to accusations the IMF forces overly harsh spending cuts on cash-strapped countries like Brazil's neighbor Argentina in exchange for bailout loans.

"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," he said. "No leader can work with a knife to their throat because (their country) owes money."

'Brazil is back!'
Lula, who took office in January, is looking to reposition Brazil as a global go-between and deal broker, seeking friendly ties across the board after four years of relative isolation under his far-right predecessor, Jair Bolsonaro.

He is due to meet with Chinese counterpart Xi Jinping in Beijing on Friday, and also visited US President Joe Biden in February.

"Brazil is back!" Lula promised in Shanghai, where he arrived on Wednesday night. "The time when Brazil was absent from major world decisions is in the past. We are back on the international stage, after an inexplicable absence."

One of the main topics on the agenda, when Lula and Xi meet on Friday, is expected to be the Ukraine war. Both China and Brazil have positioned themselves as mediators in the conflict, despite Western concerns that they are overly cozy with Russian President Vladimir Putin. Both countries have refused to join Western nations in imposing sanctions on Russia for its invasion.

Trade ties
The Shanghai leg of Lula's trip highlighted another key goal of the visit –- deepening trade ties between the Asian giant and Latin America's biggest economy. China is Brazil's biggest export market, buying tens of billions of dollars' worth of soybeans, beef and iron ore.

Under the currency deal announced in March, Brazil and China have named two banks – one in each country – to conduct their massive trade and financial transactions by directly exchanging yuan for reais and vice versa, instead of going through the dollar. China has similar deals with Russia, Pakistan and several other countries.

After Rousseff's inauguration, Lula visited a research center run by Chinese telecom giant Huawei. Huawei's chair walked him through an exhibition showcasing the company's extensive presence in Brazil – a contrast with the United States, where companies are effectively barred from doing business with the firm.

Lula also met the head of China's biggest electric carmaker, BYD, which said in October that it planned to set up a vehicle manufacturing plant in northern Brazil's Bahia after Ford Motors closed its factory there. The company is already making electric buses and cars in Brazil for the Latin American market.

Lula, who previously led Brazil from 2003 to 2010, is seeking to smooth relations with China, after ties deteriorated under Bolsonaro.

The 77-year-old president was initially scheduled to make the trip in late March, but had to postpone it after coming down with pneumonia.

He is travelling with a large delegation of about 40 high-level officials, including cabinet ministers, governors and members of Congress.



Italians Head to Polls in Referendum on Citizenship and Labor, But Vote Risks Sinking on Low Turnout

A woman casts her ballot in a box for referendums on citizenship and job protections, at a polling station in Milan, Italy, Sunday, June 8, 2025. (Claudio Furlan/ LaPresse via AP)
A woman casts her ballot in a box for referendums on citizenship and job protections, at a polling station in Milan, Italy, Sunday, June 8, 2025. (Claudio Furlan/ LaPresse via AP)
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Italians Head to Polls in Referendum on Citizenship and Labor, But Vote Risks Sinking on Low Turnout

A woman casts her ballot in a box for referendums on citizenship and job protections, at a polling station in Milan, Italy, Sunday, June 8, 2025. (Claudio Furlan/ LaPresse via AP)
A woman casts her ballot in a box for referendums on citizenship and job protections, at a polling station in Milan, Italy, Sunday, June 8, 2025. (Claudio Furlan/ LaPresse via AP)

Italians headed to the polls Monday on the second and final day of referendums that would make it easier for children born in Italy to foreigners to obtain citizenship, and on providing more job protections. But partial data showed a low turnout, well below the required 50% plus one threshold, risking to invalidate the vote.
Campaigners for the change in the citizenship law say it will help second-generation Italians born in the country to non- European Union parents better integrate into a culture they already see as theirs, The Associated Press said.
Partial data from Italy’s Interior Ministry published at 2100 GMT on Sunday showed that national turnout stood at 22.7%, just over half of the 41% registered at the same time of the day in the latest comparable referendum held in 2011. The polling stations close later Monday at 1300 GMT.
The new rules, if passed, could affect about 2.5 million foreign nationals who still struggle to be recognized as citizens.
The measures were proposed by Italy’s main union and left-wing opposition parties. Premier Giorgia Meloni showed up at the polls on Sunday evening but didn't cast a ballot — an action widely criticized by the left as antidemocratic, since it won't contribute to reaching the necessary threshold to make the vote valid.
“While some members of her ruling coalition have openly called for abstention, Meloni has opted for a more subtle approach,“ said analyst Wolfango Piccoli of the Teneo consultancy based in London. ”It’s yet another example of her trademark fence-sitting.’’
Rights at stake
Supporters say this reform would bring Italy’s citizenship law in line with many other European countries, promoting greater social integration for long-term residents. It would also allow faster access to civil and political rights, such as the right to vote, eligibility for public employment and freedom of movement within the EU.
“The real drama is that neither people who will vote ‘yes’ nor those who intend to vote ‘no’ or abstain have an idea of what (an) ordeal children born from foreigners have to face in this country to obtain a residence permit,” said Selam Tesfaye, an activist and campaigner with the Milan-based human rights group Il Cantiere.
Activists and opposition parties also denounced the lack of public debate on the measures, accusing the governing center-right coalition of trying to dampen interest in sensitive issues that directly impact immigrants and workers.
In May, Italy’s AGCOM communications authority lodged a complaint against RAI state television and other broadcasters over a lack of adequate and balanced coverage.
Opinion polls published in mid-May showed that only 46% of Italians were aware of the issues driving the referendums. Turnout projections were even weaker for a vote scheduled for the first weekend of Italy’s school holidays, at around 35% of around 50 million electors, well below the required quorum.
“Many believe that the referendum institution should be reviewed in light of the high levels of abstention (that) emerged in recent elections and the turnout threshold should be lowered,” said Lorenzo Pregliasco, political analyst and pollster at YouTrend.
Some analysts note, however, that the center-left opposition could claim a victory even if the referendum fails on condition that the turnout surpasses the 12.3 million voters who backed the winning center-right coalition in the 2022 general election.