S.L. Kanthan@Kanthan2030
Ni hao, Mao! Brazil establishes RMB clearing house (How de-dollarization happens incrementally)
https://www.reuters.com/markets/currenc ... 023-02-07/
— meaning that Brazilian exporters can get paid in Chinese Yuan.
China has been Brazil’s #1 trade partner for the last 14 years.
Last year, the bilateral trade was $170 billion — twice the US-Brazil trade.
So, why use American dollar?
Brazil’s exports to China include soybeans, corn, sugar, coffee, beef, iron ore etc.
And China helps Brazil with FDI ($30 billion) and all kinds of infrastructure projects.
Chinese firms like electric car company BYD have also opened up manufacturing plants in Brazil, creating jobs and economic growth.
Win-win.
![Εικόνα](https://i47.servimg.com/u/f47/20/03/25/13/m1853.png)
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![Εικόνα](https://i47.servimg.com/u/f47/20/03/25/13/m1852.png)
S.L. Kanthan
@Kanthan2030
Brazil - the largest economy in Latin America - looks East, away from the Western Hemisphere’s self-appointed dictator, the USA.
![🔹](//cdn.jsdelivr.net/emojione/assets/3.1/png/64/1f539.png)
President Lula will visit China soon (his trip got postponed because of illness)
![🔹](//cdn.jsdelivr.net/emojione/assets/3.1/png/64/1f539.png)
The ex-President of Brazil - Dilma Roussef - just became the President of BRICS Bank, the New Development Bank,
which will fund projects that the IMF and World Bank won’t.