Biden Crashes The U.S. Dollar
This is why America needs a smart president.
According to reports, Brazil and China have agreed to use their respective currencies instead of the U.S. dollar when engaging in trade transactions.
According to Fox, it was announced that the agreement between China and Brazil would allow them to conduct financial and trade transactions directly. They will be able to exchange their currencies, yuan and reais, without having to convert them first into U.S. dollars.
As per the Brazilian Trade and Investment Promotion Agency (ApexBrasil), the recently formed agreement is anticipated to lower expenses and encourage more extensive bilateral trade and investment.
Based on the latest statistics, China is currently Brazil’s primary trading partner, responsible for over 20% of all imports, followed by the United States. Moreover, China is also the most extensive export market for Brazil, accounting for more than one-third of all exports.
In 2009, China superseded the United States and became Brazil’s leading trading partner. At present, Brazil receives the most significant Chinese investment in Latin America, primarily focused on high-tension electricity transmission lines and oil extraction.
In January, officials from both nations came to a preliminary agreement to abandon the U.S. dollar. The announcement of the deal occurred subsequent to a high-level business forum between China and Brazil in Beijing.
After a period of strained relations with China under the previous Brazilian President, Jair Bolsonaro, who had adopted an anti-China stance during his campaign and term, the newly-elected President Luiz da Silva, who was inaugurated in January, has taken steps to improve the ties with Beijing.
Brazil’s current leftist president had planned to visit Beijing last weekend, but unfortunately had to cancel the trip due to contracting pneumonia. However, a group consisting of ministers, senators, lawmakers, and hundreds of business individuals, including over 100 from the agricultural industry, were scheduled to accompany him on his first official visit to China since taking office.
