Brazil and China Strike Deal to Stop Using US Dollar
This post covers a reported trade agreement between Brazil and China to stop using the U.S. dollar.
What the Brazil and China agreement says
Reportedly, Brazil and China have come to an agreement to shift away from using the U.S. dollar. The two countries also use their respective currencies in trade transactions.
Under the terms of the deal, the two countries can directly exchange yuan for reais (or vice versa) without converting to the U.S. dollar first. This move is expected to reduce costs and further promote bilateral trade and investment.
Trade between Brazil and China
China is Brazil’s top trading partner, making up over 20% of its imports, with the U.S. coming in second. Similarly, China is Brazil’s largest export market, accounting for more than a third of all exports.
Key takeaways
- The two countries reportedly agreed to use their respective currencies in trade.
- The two countries can exchange yuan for reais directly.
- China is Brazil’s top trading partner and its largest export market.
Learn more about the relationship on Wikipedia.
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