China y Brazil they discussed and agreed on the possibility of trading using their currencies, the Chinese yuan and the Brazilian real, instead of the US dollar. This is because both nations have a close trading relationship. In addition, they are interested in reducing the costs associated with the use of the dollar in bilateral trade.
However, although there are agreements and discussions around the use of local currencies for trade, the approval of the central banks of both countries is still required for this to happen. Furthermore, the full transition to the use of local currencies in bilateral trade can take time and be a gradual process.
In general, the use of local currencies in trade between countries can have advantages and disadvantages, and is a matter of discussion in the international community.
The countries have a close trading relationship and are two of the largest and most significant economies in the world. The two countries trade in a wide range of products and services, including:
Basic products: Brazil is one of the world‘s largest producers of commodities such as soybeans, iron ore and oil, and China is one of the largest importers of these products.
Agriculture: Brazil exports a large amount of agricultural products to China, including pork, chicken, and soybeans.
Technology: China is one of the largest exporters of technology products, while Brazil imports many of these products.
Machinery: Brazil exports agricultural machinery and other types of machinery to China.
Turismo: China and Brazil have a growing tourism trade, with many Chinese tourists visiting Brazil and vice versa.
ORIGINAL LINK: China and Brazil agreed to trade in their currencies (elnacional.com)