Brazil’s state-owned company for the promotion of exports and investments, ApexBrasil, announced on Wednesday the beginning of the establishment of bilateral trade between China and Brazil in local currencies, directly between the Chinese Yuan and the Brazilian Real, excluding the US dollar as a method of payment.
During the Brazil-China Economic Seminar, held in Beijing, two initial agreements were signed to implement the mechanism. The first agreement establishes that the Brazilian bank BBM, based in the city of Salvador and under the control of the Chinese Bank of Communications (Bocom), enters the China Interbank Payment System (CIPS), an alternative to US ‘Swift’ payment system.
The second agreement signed includes the creation of a Clearing House, a bank that allows business deals and loans without the presence of the US dollar.
The Secretary of International Relations of the Ministry of Finance of Brazil, Tatiana Rosito, said at the end of the seminar that as an “initial step”, the measure allows “greater predictability of exchange rates” and “reduces transaction costs ” between the Yuan and the Real.
Meanwhile, the Chinese Vice Minister of Commerce, Guo Tingting, stressed that Brazil and her country are strategic partners and celebrated the progress achieved with the agreement.