On November 20, the Brazil's National Bank for Economic and Social Development (BNDES) and the China Development Bank (CDB) signed a loan operation for 4 billion reais (around 5 billion renmimbi), in the Brazilian bank's first operation in a foreign currency.

The fundraising agreement was signed during the Chinese President Xi Jinping's visit to Brazil, as part of a block of 37 agreements in various areas, and is expected to last three years. According to the BNDES, the funds will be used in a credit line designed to support BNDES investments in different sectors.

The move by the two banks is a first step in the project to expand business in local currency. The president of the BNDES, Aloizio Mercadante, said that the loan in Chinese currency is an important step to diversify the options for Brazilian businesspeople, especially exporters, because it has the natural exchange rate protection resulting from its exports.

(Source: Terra Notícias, on November 20)