China and Brazil are abandoning the US dollar in mutual trade in favour of their own national currencies, reports Fria Tider. The agreement will allow the world’s two largest countries to conduct financial transactions directly without excessive prior conversion.
Brazil and China have reached an agreement to abandon the US dollar in favour of their own national currencies in trade transactions. The agreement will allow the two countries to conduct trade and financial transactions directly without unnecessary prior conversion, reports Fria Tider.
Brazilian trade and investment promotion agency ApexBrasil reports that the agreement will reduce costs and promote even greater bilateral trade cooperation and investment promotion. In practice, the deal will also reduce the influence of the US in the global economy, as the world’s two largest countries now become independent of the dollar.
According to the latest figures, China is Brazil’s biggest trading partner, accounting for more than a fifth of all imports, followed by the US. China is also Brazil’s biggest export market, accounting for more than a third of all exports, writes Fria Tider.
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