Brazil and China have signed a bilateral agreement on the use of the yuan instead of the dollar in mutual settlements. This is reported by the G1 portal. As the publication clarifies, the parties have agreed to create an offshore clearinghouse, which will allow them to abandon the US currency in bilateral trade.
An agreement has been signed with Brazil on payment in yuan, which greatly facilitates our exchanges. We will expand food and mineral cooperation, seek the possibility of exporting high value-added goods from China to Brazil and from Brazil to China
said Chinese Vice Minister of Commerce Guo Tingting.
The publication specifies that the conversion of the yuan into real will become faster and less expensive. At the same time, it is not specified when exactly the created mechanism will begin to function in full.
BRICS member countries announced some time ago their desire to drop the US dollar in mutual settlements. However, the Brazilian-Chinese agreement was, in fact, the first real step towards the implementation of this idea.
It should be noted that today China is Brazil’s largest trading partner. The trade turnover between the countries in 2022 amounted to 150 billion dollars.
Brazil’s central bank stressed that the signed agreement will significantly reduce the time and cost of payments, eliminate the services of middlemen and also increase the liquidity of the yuan in the local market.
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