Abandon the US dollar and settle trade with China in local currency
On the 30th, according to foreign media reports such as Agence France-Presse, the Brazilian government said on Wednesday that Brazil had reached an agreement with China to no longer use the US dollar as the intermediate currency, but instead use its own currency for trade settlement. According to reports, this agreement allows China and Brazil, the largest economies in Latin America, to directly conduct large-scale trade and financial transactions, exchanging Renminbi for the real, and vice versa, rather than through the United States dollar.
"It is expected that this will reduce costs, promote greater bilateral trade, and facilitate investment," the Brazilian Trade and Investment Promotion Agency (Apex Brasil) said in a statement. It is understood that China and Russia, Pakistan, and other countries have similar agreements.