Is a de-dollarization in progress? China, Brazil sign memorandum on yuan clearing

Brazil is China’s largest trade partner in Latin America where bilateral trade volume exceeded $100 billion four years in a row

The People’s Bank of China (PBOC) recently signed a memorandum of cooperation with the Central Bank of Brazil to establish renminbi clearing arrangements in Latin America’s largest economy, China’s central bank announced on Tuesday.

These arrangements will help enterprises and financial institutions in the two countries conduct cross-border transactions using the Chinese yuan, the PBOC said.

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They will also further facilitate bilateral trade and investment, the bank added.

Brazil is China’s largest trade partner in Latin America where bilateral trade volume exceeded $100 billion four years in a row. China has served as Brazil’s biggest trade partner for 13 consecutive years.

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