China and Brazil agree to abandon the dollar in their bilateral trade
On March 30th, Brazil and China announced that they had reached an agreement to abandon the dollar and use their local currencies in their bilateral trade dealings.
“There are expectations that this will reduce costs, boost bilateral trade further and facilitate investment,” Agence France-Presse quoted the Brazilian Agency for the Promotion of Trade and Investment (ApexBrazil) as saying in a statement.
China is Brazil’s largest trading partner, with trade exchange between them amounting to about $150 billion last year.
The agreement was announced during a high-level China-Brazilian business forum in Beijing. It follows an initial agreement in January.
Officials said the Industrial and Commercial Bank of China and BBM Bank would carry out the transactions.
Brazilian President Luiz Inacio Lula da Silva was due to attend the forum but had to postpone his visit to China after contracting pneumonia.
China also abandoned dealings in dollars with Russia, Pakistan and several other countries
O.al-Mohammad