China became Brazil’s most significant commercial partner in 2009, surpassing the United States.
Reports indicate that Brazil and China have decided to replace their use of the U.S. dollar with their own currencies in commercial transactions.
The agreement, which was made public on Wednesday, will enable direct commerce and financial activities between China and Brazil without the need to convert their currencies to the U.S. currency.
ApexBrasil, the Brazilian Trade and Investment Promotion Agency, claims that the new strategy will “improve efficiency” and “facilitate even more international trade and investment.”
China is Brazil’s most significant trading partner, accounting for more than 20% of all Brazilian goods. The USA is in second place. Brazil’s largest export market is China, where they send more than a third of their exports.
As of 2009, Brazil’s biggest commercial partner wasn’t the United States but rather China. The majority of Chinese investment in Brazil is currently going toward high-tension power transmission networks and hydrocarbon mining.
A tentative deal to abandon the U.S. dollar was disclosed by officials from both countries following a high-level China-Brazil business meeting in Beijing in January.
After his predecessor, Jair Bolsonaro, strained relations with Beijing through anti-Chinese rhetoric on the campaign trail and in office, the freshly elected President Luiz da Silva of Brazil has taken steps to mend fences.
The communist president of Brazil was scheduled to travel to China this past weekend, but he had to cancel his trip after contracting influenza. On his first state trip as president, Lula was expected to be accompanied by at least one thousand businesspeople.