The Bank of China made history in bilateral trade between China and Brazil by carrying out the first complete transaction in local currency for Brazilian companies.

On the 28th of September, Eldorado Brasil successfully completed a transaction in which it discounted a letter of credit in RMB with forward payment issued by the Chinese importer, receiving payment in RMB in advance. In accordance with Brazilian exchange regulations, Banco da China Brasil immediately converted the RMB received into Reais and credited the customer's local account. 

This complete cycle of RMB transactions, from the pricing of the goods to the direct conversion of the RMB to the Real, provided a comprehensive RMB settlement solution for Brazilian exporters.

In addition to Eldorado Brasil, other major Brazilian exporters, such as Suzano and Petrobras, are also studying the possibility of trading in local currency with China.

(Source: Exame)