Beijing and Brazil have signed an agreement on trade in mutual currencies, abandoning the US dollar as an intermediary, and are also planning to expand cooperation on food and minerals. The agreement will enable the two BRICS members to conduct their massive trade and financial transactions directly, exchanging RMB Yuan for Brazilian Real and vice versa, instead of using the US dollar for settlements.
The Brazilian Trade and Investment Promotion Agency stated that “The expectation is that this will reduce costs, promote even greater bilateral trade and facilitate investment.” China has been Brazil’s largest trading partner for more than a decade, with bilateral trade hitting a record US$150 billion last year.
The countries also reportedly announced the creation of a clearinghouse that will provide settlements without the US dollar, as well as lending in national currencies. The move is aimed at facilitating and reducing the cost of transactions between the two sides and reducing US dollar dependence in bilateral relations.
For this bank policy will help more and more Chinese company to expand Metal mesh and metal material business in Brazil.
Post time: Apr-10-2023