An agreement to abandon the US dollar in bilateral trade was reached in April of this year.
For the first time, China and Brazil have agreed under a trade agreement between the two companies in their national currencies, without using the US dollar. China Daily reported this with reference to the Bank of China.
The agreement involves the export of 43 boxes of pulp from Brazil’s Eldorado Brasil to China. They were shipped in August from the Brazilian port of Santos to the Chinese Qingdao.
The Brazilian company agreed with the Chinese importer to use the yuan for payment. The Bank of China opened an RMB letter of credit, a short-term line of credit, with Eldorado Brasil and immediately transferred the RMB in Brazilian reals to the supplier’s account.
The bank emphasized that this happened for the first time in the history of trade between the two countries.
The agreement to remove the US dollar from bilateral trade was reached in April during the visit of Brazilian President Luiz Inacio Lula da Silva to China.
Brazil actively promotes the transition to payments in national currencies in trade not only with China, but also with other countries of the so-called Global South. This issue received significant attention at the most recent summit of BRICS (Brazil, India, South Africa, China and Russia) leaders held in Johannesburg in August.
Russia is actively advocating for the abandonment of the US dollar, because due to the sanctions for the invasion of Ukraine, access to the US currency is denied.
China also continues to talk about the need to abandon the dollar in trade with other countries and is trying to gradually internationalize the yuan and make it one of the world’s currencies.
Source: korrespondent
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