Brazil and China traded using national currencies for the first time
It was reported that yesterday Brazil and China carried out bilateral trade for the first time in their own national currencies.
According to the Venezuela-based Telesur website, national currencies were used for the first time in the field of bilateral trade, when payment received in the Chinese national currency, yuan, was directly converted into the Brazilian real.
In the statement from the Bank of China branch in Brazil, the financial transaction was announced as a “date.”
The statement highlighted that the transaction was carried out to purchase pulp from the company called “Eldorado Brazil”, which has a representative office in Shanghai, China.
THE LARGEST COMMERCIAL PARTNER
In news on the subject in the Brazilian press it was stated that other Brazilian pulp-producing export companies would also trade with China in exchange for local currency.
China and Brazil agreed on March 30 to use national currencies, yuan and real, instead of the US dollar in trade between them.
China is Brazil’s largest trading partner.
The trade volume between the two countries last year exceeded 150 billion dollars.
ARANTIN AND BOLIVIA ALSO USED THE YUAN
Argentine President Alberto Fernández and his Brazilian counterpart, Luiz Inácio Lula da Silva, promised in May to work together to create a new mechanism to avoid the use of the US dollar in bilateral trade and with neighboring countries.
Argentine Economy Minister Sergio Massa announced on April 27 that his country had reached an agreement with China to make import payments exceeding $1 billion to China in yuan.
Bolivia announced on July 28 that it had begun using the yuan instead of the US dollar in trade with neighboring countries.
Former Brazilian president Dilma Rousseff, president of the New International Development Bank of the BRICS, made up of Brazil, Russia, India, China and South Africa, made the following statements upon assuming office:
“Why should all countries base their trade on the dollar? Why can’t we trade with our own currencies? “Who decided it was a dollar?” He used the following expressions.
Experts believe that the reason the yuan is used instead of the dollar in trade in South America and the Caribbean is that these countries “want to establish stronger ties with China and aim to reduce their dependence on the dollar.” (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
