Brazil and China agree to trade without the dollar

A new blow to the hegemony of the US dollar has been dealt today. This is an agreement reached by the governments of Brazil and China. Both sides, we recall, are part of the BRICS (along with Russia, South Africa and India).

Brazil and China in the agreement prescribed specific steps to abandon the dollar in the implementation of mutual settlements. It is envisaged that mutual trade between these two countries will be carried out in national currencies - in the yuan-real pair.

The parties agreed on a direct free conversion of currencies without the need to use a double exchange, in which the American dollar has traditionally been involved in recent decades.

According to Brazilian and Chinese experts in the field of economics and financial services, the two countries, based on the decision taken today, will be able to reduce the costs of trading, saving at least 8% of the financial resources included in the transaction on dual currency exchanges alone. In simple terms, this means that these funds will no longer go to the United States. After all, if until now it was the United States that aggressively acted as an intermediary in any trade transaction between Brazil and China, in fact ordering to carry out transactions through an exchange for dollars, now Washington and the Fed are losing such unjustified profits.

In general, we are talking about the creation of an offshore clearing center, which also allows you to speed up the transaction between these large countries.

Over time, such a mechanism is planned to be extended to all trade operations within the framework of the BRICS, which is ready to be supported by other countries that want to become part of this organization. One example is Saudi Arabia. Incidentally, she has already agreed with China on the partial sale of oil without using the US dollar.

Comments

[WILL]

Trifle a nice (c) far from a small trade turnover will get out of control $. 150 billion in $ by 2022!

[The popuas]

Yes ... yes, a trifle. s .... only while the Russian Federation is physically puffing up with the West, China is economically acting under the guise without dispersing its forces ... just brilliant

[bayard]

Quote: Popuas

.only while the RF is physically puffed up

Russia has long traded with India for rubles and rupees. And since March last year, it has been trading oil, coal and gas with Europe for rubles. Within the framework of the BRICS, it was decided to trade in national currencies, and this is Russia's proposal - it is Putin who has been actively promoting the idea of ​​trading in national currencies through currency swaps for a long time (more than 10 years).
And China now has a "minute of glory" and a unique moment to transfer world trade to trade in yuan. The size of the economy and the volume of trade allow this. That's just not all countries in the world are eager to change one (American) hegemon to Chinese. That is why the countries of Southeast Asia are switching to trade in national currencies.
And all this compresses the dollar zone. You can’t sell dollars to such countries for goods and resources ...

[volodimer]

And China now has a "minute of glory"

Yes, that's not a "minute" .. The current situation is not measured in time characteristics (although in them too). China and the yuan are becoming .. One, the world center, and the second is a completely world currency. Albeit without official status yet, but real.

[Ivan Ivanov]

If everyone had agreed at once, the West would have sat on the fifth point, but for now we are apart, who we bought, who we scared, who is afraid of the markets, Western colonialism cannot be moved

[Goto]

And everyone is silent about the ruble. All exchanges in national currencies, now the yuan instead of the dollar.

[igorbrsv]

In the national currencies of countries, those that enter into transactions with each other in equal currency proportions. What's wrong? That Uruguay and Liechtenstein will not pay in Belarusian rubles, but in their national currencies

[Brturin]

Quote: Goto

now yuan instead of dollar.

Even if the Chinese create the most powerful economy and the strongest. army, it is unlikely that this will make the yuan a global replacement for the dollar, one of the world currencies, yes ... rather, the world will break up into regional centers with their own currencies (Brazil and Argentina thought about creating their own currency, if other neighbors come along to use in their own region its own currency) than a new "hegemon" will appear ... although forecasts are not a thankful task .... let's see

[evgen1221]

You contradict yourself. And what allowed America to make the dollar a global currency? Is it not the army with the economy in the 40-80s?

[Brturin]

40s...beginning...conference in Bretton Woods, is such a conference possible now? are all countries ready to exchange one for another and are the Chinese themselves ready to use their army around the world ... Yes, and in the 40s they provided gold, which was far from an unimportant factor (only after strengthening the $ they removed it), another factor was an oil trade agreement for $ (now the Saudis are ready to sell oil for Kenyan shillings, but not yuan) ... So far, there is no agreement among the comrades and will ...

[Volodin]

Quote: tralflot1832

Funnily enough, Brazilian President Bolanzaro returned from an official visit to the US today. .US State Department: what was it? And it was that Bolansar paid tribute to the still "not deceased" self-propelled Joe.

So the President of Brazil now Lula da Silva

[novel66]

And even more fun!!
Ttttttttttttttttttttt

[tralflot1832]

I'm sorry, I read the news on the diagonal.

[Pallas]

Ex-president. Now there seems to be another Silva.

[novel66]

Another BRICS in the Wall

You yourself are short and meaningless

[certero]

Such an attack on America is much stronger than a hundred bombs.
Everything in America is based not only on its powerful army and navy, but also on the comprehensive use of trade dollars.

[Bekkham Ali]

Yes, how is it? In the US, new ones are being printed. To whom now?

[evgen1221]

You can drown Negroes in America. Humanitarian.

[Michael]

"Oooh, dollars!" (c)
"Weapons on the floor, hands behind the head, everyone lie face down on the floor!" (c)

[nik-mazur]

mutual trade between these two countries will be carried out in national currencies - in a pair of yuan-real

It looks like kicking in the balls of the world hegemon smoothly and imperceptibly turns from marginal and risky hooliganism into a respectable sports discipline.