On March 30, according to Agence France-Presse, the Brazilian government stated on March 29 that China and Brazil had reached an agreement to stop using the U.S. dollar as an intermediate currency and conduct trade in their own currency.
Agence France-Presse said the agreement would allow China and Brazil, Latin America’s largest economy, to conduct large-scale trade and financial transactions directly, exchanging yuan for real and vice versa, rather than through an intermediate currency, the U.S. dollar. .
The agreement was announced after the China-Pakistan high-level business forum held in Beijing, and a preliminary agreement was reached in January this year, the report said.
“This is expected to reduce costs … and facilitate bilateral trade and investment,” Brazil’s Export Investment Promotion Agency said in a statement.