Brazil and China Strike Deal to Stop Using US Dollar
Reportedly, Brazil and China have come to an agreement to shift away from using the U.S. dollar and 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. 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.