Brazilian exporters will not need to use the dollar to carry out their commercial transactions with China. An agreement between the two central banks was announced by the Ministry of Finance of Brazil during the Brazil-China Economic Seminar held in Beijing on the 29th of March.

This is an effort to reduce transaction costs, said Tatiana Rosito, secretary for International Affairs at the Ministry of Finance.

It is not an obligation. For the exporter who so wishes, trade can continue to be carried out in dollars. But for those who choose to carry out the sale between reais and renminbi, a kind of box will be established in Brazil to guarantee the conversion and liquidity between the two currencies.

Another agreement will also allow Brazilian banks to participate in the payment system in the Chinese financial market.

(Source: UOL)