Submitted by Wega58 t3_12631by in wallstreetbets
China and Brazil have agreed to trade in their own currencies, bypassing the US dollar as an intermediary, according to the Brazilian government. This deal will allow China, the leading competitor to US economic dominance, and Brazil, Latin America's largest economy, to carry out their extensive trade and financial transactions directly by exchanging yuan for reais and vice versa, instead of using the dollar.
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said in a statement that this is expected to lower costs, promote even greater bilateral trade, and facilitate investment. China is Brazil's most significant trading partner, with a record bilateral trade of US$150.5 billion in the previous year.
This deal follows a preliminary agreement made in January and was announced after a high-level China-Brazil business forum in Beijing. Brazilian President Luiz Inacio Lula da Silva was initially scheduled to attend the forum as part of a high-profile China visit, but had to postpone his trip indefinitely due to pneumonia.
The Industrial and Commercial Bank of China and Bank of Communications BBM will be responsible for executing the transactions. China has established similar currency agreements with Russia, Pakistan, and several other countries.
https://www.foxbusiness.com/markets/brazil-china-strike-trade-deal-agreement-ditch-us-dollar.amp