Brazil, China strike trade deal agreement to ditch US dollar

[beijingwalker]

Brazil, China strike trade deal agreement to ditch US dollar​

China overtook the United States as Brazil’s top trading partner in 2009​

Published March 29, 2023 8:56pm EDT

Brazil and China have reportedly struck a deal to ditch the U.S. dollar in favor of their own currencies in trade transactions.

The deal, announced Wednesday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais – or vice versa – rather than first converting their currencies to the U.S. dollar.

The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to "reduce costs" and "promote even greater bilateral trade and facilitate investment."

China is Brazil’s largest trading partner, accounting for more than a fifth of all imports, followed by the United States, according to the latest figures. China is also Brazil’s largest export market, accounting for more than a third of all exports.

China overtook the United States as Brazil’s top trading partner in 2009. Today, Brazil is the largest recipient of Chinese investment in Latin America, driven by spending on high-tension electricity transmission lines and oil extraction.

Officials from both countries reached a preliminary agreement to ditch the U.S. dollar in January and the deal was announced after a high-level China-Brazil business form in Beijing.

Brazilian President Luiz da Silva, sworn in on January, has moved to strengthen ties with Beijing after a period of rocky relations under his predecessor, Jair Bolsonaro, who used anti-China rhetoric on the campaign trail and in office.

Brazil’s leftist president was scheduled to visit Beijing last weekend by had to cancel his trip after contracting pneumonia. A delegation composed of ministers, senators, lawmakers, and hundreds of business people – including more than 100 from the agricultural sector – had been set to accompany Lula during his first state visit since taking office.

Brazil, China strike trade deal agreement to ditch US dollar

Brazil and China have reached an agreement to ditch the U.S. dollar in favor of using their own currencies for transactions, a move that officials say will save both sides costs.

www.foxbusiness.com

 

[ZeEa5KPul]

Good stuff. This is exactly what America fears, this is its worst nightmare - that its financial parasitism is brought to an end.

 

[beijingwalker]

China is chipping away at global dollar domination, one country at a time.

 

[PakAlp]

China is chipping away at global dollar domination, one country at a time.

A few decades back noone would dare to do this but slowly countries are standing up to the USA bullying. Most surprising is Saudi Arabia getting closer to China and restoring relations with Iran. Pakistan is the only slave left, wouldn't dare to attend a small summit in Malaysia due to Saudi pressure but now Saudi Arabia is openly embracing Iran. Pakistan future is with China, Iran, Turkey, Malaysia, Indonesia, Azerbaijan, ASEAN, Central Asia, Africa but puppets are busy 24 7 proving their loyalty.

 

[etylo]

De-dollarizationin in the world is under way, good stuff, away with US hegemony !

 

[Abid123]

Pakistan future is with China, Iran, Turkey, Malaysia, Indonesia, Azerbaijan, ASEAN, Central Asia, Africa

Our future is with the "Global South". Period..

 

[mike2000 is back]

China is chipping away at global dollar domination, one country at a time.

Ever wondered why despite all this hype for decades, China's currency is still less traded and less used as a reserve currency globally even less than our Pound or Japanese Yen? Lol forget about the Dollar or Euro.
CCP doesn't want to lose capital controls over your currency so they will not allow it to be freely traded. Thus i believe is also due to the fact that global financial transactions are much larger than trade transactions, and financial asset trade settlement in renminbi is still small today. Moreover, Unlike the US, China's financial markets are still not thick, broad and liquid enough for the renminbi to become a major reserve currency to be honest. It will remain that way for a long time

 

[jhungary]

Ever wondered why despite all this hype for decades, China's currency is still less traded and less used as a reserve currency globally even less than our Pound or Japanese Yen? Lol
CCP doesn't want to lose capital controls over your currency so they will not allow it to be freely traded. Thus i believe is also due to the fact that global financial transactions are much larger than trade transactions, and financial asset trade settlement in renminbi is still small today. Moreover, Unlike the US, China's financial markets are still not thick, broad and liquid enough for the renminbi to become a major reserve currency to be honest. It will remain that way for a long time

That's because RMB is seriously undervalue, and if they float it now, it is going to spike demand, they can't cope with that demand and that's why the Chinese have to manually devalue and control their currency.

As long as they keep doing that, no one will want to hold RMB for more than what they need which is a direct result of Capital control.

 

[beijingwalker]

Ever wondered why despite all this hype for decades,

Even one decade ago China was still very poor and underdeveloped, someone talks about RMB threatening dollar for decades? China’s yuan was only officially added to the International Monetary Fund’s list of reserve currencies in 2016.

 

[casual]

baby steps. Could save Brazil and China millions of dollars in transaction fees. If all trade between two nations ditch dollar.

 

[beijingwalker]

Brazil clears the way to transact with China using yuan​

New payment settlements system created as an alternative to the US-dominated global structure​

13 APRIL 2023 - 17:48

BLOOMBERG NEWS

Brazil took steps to make it easier to transact with China in yuan, a sign of its growing trade and investment ties with the world’s second-largest economy.

Banco Bocom, which provides banking services in Brazil, became the first Latin American bank to sign up as a direct participant in China’s cross-border payments settlements system. Known by the acronym Cips, it was created as an alternative to the US-dominated global system.

Brazil clears the way to transact with China using yuan

Chinese state bank-controlled Banco Bocom signs up to new payment settlements system

www.businesslive.co.za

 

[HGV]

Ever wondered why despite all this hype for decades, China's currency is still less traded and less used as a reserve currency globally even less than our Pound or Japanese Yen? Lol forget about the Dollar or Euro.
CCP doesn't want to lose capital controls over your currency so they will not allow it to be freely traded. Thus i believe is also due to the fact that global financial transactions are much larger than trade transactions, and financial asset trade settlement in renminbi is still small today. Moreover, Unlike the US, China's financial markets are still not thick, broad and liquid enough for the renminbi to become a major reserve currency to be honest. It will remain that way for a long time

Chinese Yuan doesn't have to become the new reserve currency in order for the US' financial leverage over the world to be curtailed.

 

[lightning F57]

If you look at these developments strategically, China is decoupling itself from the US led exchange system which is reliant on the dollar. This helps in the event of conflict and sanctions.

 

[chinasun]

Brazilian President Luiz Inacio Lula da Silva has called for an end to the dominance of the US dollar as he criticised the currency's outsize role in the world economy and lashed out at the IMF. Watch the video for more details.

 

[艹艹艹]

April 27, 20234:17 AM GMT+8Last Updated 3 hours ago

Argentina to pay for Chinese imports in yuan rather than dollars​

BUENOS AIRES, April 26 (Reuters) - Argentina will start to pay for Chinese imports in yuan rather than dollars, the government announced Wednesday, a measure that aims to relieve the country's dwindling dollar reserves.