China And Brazil Strike Deal To Ditch The US Dollar

According to the Brazilian government, China and Brazil have reached a deal to trade in their own currencies, ditching the United States dollar as an intermediary entirely, AFP reported. In doing so China extends its bilateral, USD-exempting currency arrangements beyond countries such as Russia, Pakistan and Saudi Arabia to now include the Latin American exporting powerhouse. “The expectation is that this will reduce costs... promote even greater bilateral trade and facilitate investment,” the Brazilian Trade and Investment Promotion Agency (ApexBrasil) said in a statement. China is Brazil’s biggest trading partner, with a record US$150.5 billion (S$200 billion) in bilateral trade last year. The deal, which follows a preliminary agreement in January, was announced after a high-level China-Brazil business forum in Beijing.