• Categories
  • Archives

Dollar Out in Brazil-China Trade. Real and Yuan In

Yuan and the Dollar Brazil's Central Bank (BC) informed that it has reached an initial understanding with China for the gradual elimination of the US dollar in bilateral trade operations which in 2009 are estimated to reach US$ 40 billion.

"We have reached an initial understanding and we will begin working on the issue" to use the real and the yuan in bilateral trade said a spokesperson for the Brazilian Central Bank.

BC's chairman Henrique Meirelles met Sunday with his Chinese counterpart Zhou Xiaochuan in Switzerland where they are participating in a meeting of the International Bank of Settlements.

However Meirelles pointed out that there was a difference between using local currencies for bilateral trade operations and deciding on moving towards a new currency which would replace the US dollar.

"For the US dollar to be left aside as an international reserve currency there must be another currency which must perform that role," Meirelles said quoted by the Folha de S. Paulo. The Brazilian official also anticipated that there are similar discussions with India to replace the US dollar for the real and the rupee in bilateral trade.

The announcement follows the first meeting in Beijing between Brazilian and Chinese monetary and financial experts. A schedule of technical meetings was agreed two weeks ago by President Lula da Silva during the BRIC group summit (Brazil, Russia, India and China).

BRIC members are considered the largest and fastest growing developing nations.

China became this year Brazil's main trade partner ahead of the US. Brazilian exports to China in the first quarter of this year jumped 64% compared to the same period a year ago. Brazil sells mainly soy and iron to China and this year those sales soared 70% and 50%.

Oil is also expected to join the list of commodities sold to China once Brazil begins the commercial development of the recently discovered sub-salt hydrocarbons resources. In anticipation of these operations the Chinese government banking system extended Brazil and its government managed oil corporation a 10 billion US dollars loan.

China also announced that it was ruling out any "sudden changes" to its foreign- reserves policy. China is the world's main holder of US federal bonds.

China's currency policy remains "quite stable," central bank Governor Zhou Xiaochuan told reporters, easing concern that emerging-market nations, particularly BRIC may abandon the dollar.

The US currency is expected to strengthen as much as 17% in the second half of the year as North America recovers from recession faster than Europe, according to this year's most accurate foreign-exchange forecasters.



  • Show Comments (6)

  • Tom Lloyds

    Ch.C You are right about Ricardo!
    You are right about Ricardo, Ch.C!

    Ricardo cannot even distinguish New Asian Currency and Yuan. Trading in Yuan and Real does not mean that one country will adopt the others currency.
    Ricardo is so keen to ask Brazil to adapt the New Asian Currency. Chinese has absolutely zero interest.

    As I said before, Brazil is welcome to apply to join the New Asian Currency zone. It is zero chance to get approval. China will [b]not[/b] even apply. Their Yuan will control the world!

  • forrest allen brown

    Ricardo C. Amaral
    what do you think about the vote in congress that gives a free way to
    the bric union not having to hold to the green standardes the compaines in the US and other countries do ??

    to me its like let them destory the air , rivers , land , while giving them less tax on imports the the US and EU .

    this go along with your money idea

  • Ricardo C. Amaral

    Reply to ch.c
    You are calling me stupid?

    Talking about being stupid you got first prize since you are the one that just gave a full response to an article that has not even been published.

    You did not even make any smart guesses and your rumblings are nothing more than pure nonsense.


  • ch.c.

    Brazil / China and the New Asian Currency
    What an idiot Ricardo is ! Proven one more time !
    Actually, China and Brazil trade using the US$ as a base. Right ?
    Then to bypass the US$ they will only create what is called…A PAIR….in the currency world !
    Simple as that ! Nothing more….nothing else !

    Stupid question to the stupid Ricardo :
    using your own stupid theory, are you telling us the UK will enter the Euro Zone BECAUSE there is already a currency pair GBP/Euro…… for the last 10 years ?????????
    Ohhhh but there is also a currency pair for GBP/US$…if you did not know !
    Therefore what currency will the UK adopt…..in your stupid mind ? the US$ or the Euro since the UK have a currency pair with both ?

    And are you saying Japan & Switzerland will adopt ther US$, or the Euro ? Both currencies have already a currency pair with both the US$ and the Euro…if you did not know !

    Last but not least, there is also a currency pair between the GBP and the Swiss Franc…if you did not know !
    Who is going to adopt the other currency…in your view.

    And and and….recently Brazil and Argentina also agreed to issue a currency pair. Who is going to adopt the currency of his neighbour ????

    And and and…has the Mercosur noooo plan to have their own currency ?
    And and and…has the UN(A)SUR group of junkies not a similar plan ?

    Simple proof Ricardo that you are a triple idiot…in a terminal phase !
    Therefore I have no reason to believe differently that you got the genes of your idiots and corrupted ancestrors that you are so proud of….IN YOUR GENES…AND WELL ANCHORED !!!!!!

    Feel free to answer to what currency the GNP will merge into. Same for the Swiss Franc and the Japanese Yen since these countries have currencies pairs with most developed nations currencies !

    Mixing up everything doesnt make you smarter Ricardo. and you also have proven it by underlining your membership to Elite Trader. A group of junkies traders…until proven otherwise !

    You simply dont know what you are talking about, but no doubt you are trading currencies like an apparent expert…and lose your shirt…as usual

    ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜€ ๐Ÿ˜‰

  • forrest allen brown

    to make a bigger cut into the others countries money >

    holding so much dept from the USA is china ready to deal with brasil ways .

    brasil oil 40 bucks to extract from the earth .
    sauida arabia 2 bucks a berall
    us off shore 11 a barrel to pump up .

    good luck to you brasil
    will this mean all the illeagles will now be going to china ????????????????????????????

  • Ricardo C. Amaral

    Brazil / China and the New Asian Currency
    Basically this is a first step regarding Brazil adopting the New Asian Currency.

    My new article regarding this subject it is almost done and will be ready for publication by Monday of next week.


Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Japan Ships Back to Brazil Over 300,000 Dekaseguis

Japan is planning to combat unemployment by sending back to their countries of origin ...

Brazil Takes 30-Year Biofuel Experience to Energy Summit in the Middle East

The Fiesp (Federation of Industries of the State of Sรฃo Paulo) is working to ...

Reducing Work to 40 Hours a Week in Brazil Without Lowering Wages Is Smart and Fair

To transform the unequal and unjust structures of our society was always one of ...

Brazil’s Surplus Grows to US$ 16 Billion for the Year

Brazilian exports added up to US$ 1.108 billion in the first two working days ...

They Sell 95% of Brazil’s Neonatal Equipment to 91 Countries

Exports by Brazil's medical, hospital and laboratory equipment maker Fanem rose 35% last year. ...

US$ 100 Laptop Revolution Starts Today in Brazil

The MIT-Media Lab founder, Nicholas Negroponte’s dream of putting a laptop in every child’s ...

Brazilian Leather Exports Grow Over 20% Reaching US$ 1.82 Billion

From January to October, Brazilian exports of leather amounted to US$ 1.82 billion, a ...

In Brazil, Most Voters Have No Idea Who or What They Are Voting For

At least 70 million of Brazil’s 121 million voters are illiterate or failed to ...

England and France Favor Permanent Seat for Brazil at UN

During a speech at the UN General Assembly yesterday, British Foreign Secretary, Jack Straw, ...