Brazil and China Stop Using Dollars in Their Bilateral Trade

Photo: Dolar. By: JComp. Source: Freepik

Brazil and China have conducted bilateral trade using their national currencies, specifically the Chinese yuan, which, for the first time was directly converted into Brazilian reais instead of the US dollar. This agreement focused on the purchase of pulp by the Shanghai-based company Eldorado Brasil. Furthermore, both China and Brazil have agreed to use their national currencies instead of the US dollar in their trade going forward, following the example of Argentina and Bolivia. Experts point out that this trend of using the yuan rather than the dollar in South America and the Caribbean reflects these countries’ desire to strengthen their ties with China and reduce their dependence on the dollar.

This development represents a significant shift in how trade is conducted between these South American countries and China, reflecting a growing economic collaboration and a desire to diversify the currencies used in international transactions.

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TRT  Español (2023, October 6). Brasil y China utilizaron monedas nacionales.