ALBAWABA - China and Brazil announced reaching a deal to stop trading in the U.S. dollar and to start dealing in local currencies, AFP reported on Wednesday citing the Brazilian government.
Under the deal, both countries will ditch the U.S. dollar as an intermediary and conduct all of their trade and financial transactions directly by using yuan and reais.
?China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary, the Brazilian government said on Wednesday, Beijing’s latest salvo against the almighty greenback.#gold #silver
Ht @GoldTelegraph_ pic.twitter.com/gV7Geu0P8q— Wall Street Silver (@WallStreetSilv) March 29, 2023
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) revealed: "The expectation is that this will reduce costs... promote even greater bilateral trade and facilitate investment."
According to sources, China uses local currencies in its trade with Russia, Pakistan and several other countries.
Last year, bilateral trade between China and Brazil increased by around 5 percent year-on-year to $171.49 billion, the Global Times reported.
