![]() He said many countries lost confidence in the dollar due to the US sanctions against Russia and the recent US and European banking crisis. “With Brazil’s deal, we have now completed the second stage.” “There are three stages for renminbi internationalization– first is the global use of renminbi in small-scale international trade, then in commodity trade and finally the transformation of renminbi into a reserve currency,” Zhang said. Zhang Chao, a researcher at Taipei Institute, a Beijing-based think tank, told the National Business Daily that Brazil’s deal is an important milestone for yuan internationalization. Both sides agreed to promote trade settlement in their own currencies. Then, on March 21 of this year, Chinese President Xi Jinping and Russian President Vladimir Putin signed a joint declaration to boost diplomatic and economic ties. State media said in March last year that China-Russia bilateral trade would continue to grow with the increasing use of CIPS. Since Russian troops began a full-scale invasion of Ukraine on February 24 last year, the United States and the European Union have imposed several rounds of sanctions on Russian officials, oligarchs, banks and the central bank.īeijing refused to yield to what it called unilateral sanctions without authorization from the United Nations. Zhu said the financial sanctions imposed by the US on Russia last year have shaken people’s confidence in the dollar, boosting the global use of other currencies, including the renminbi.Īccording to SWIFT, payments in renminbi accounted for 2.19% of global payments by value in February, up from 1.91% in January, ranking fifth among major currencies for the 13th month in a row. More and more countries are willing to use the renminbi in clearing and payments, which is a significant step for yuan internationalization, Zhu Min, vice-chairman of the China Center for International Economic Exchanges, told the China Daily on the sidelines of the Boao Forum for Asia Annual Conference. Those who erected the iconic welcoming statue of Christ the Redeemer in Rio de Janeiro probably didn’t have RMB in mind, but here comes the Chinese currency. ![]() On Wednesday, over 500 Brazilian and Chinese business people proceeded with a business forum in Beijing as scheduled.īrazil’s Ministry of Foreign Affairs said in a statement that companies from both countries reached more than 20 agreements across different sectors, including energy, mining, agriculture and information-and-communication technology. Originally, Brazilian President Luiz Inacio Lula da Silva planned to visit China between March 26 and 31 but he could not make it due to health reasons. China’s imports from Brazil, including iron ore, soybeans, crude oil and paper pulp, fell 0.4% to US$109.52 billion. China’s exports to Brazil, including machines, computers, steel, textiles and autos, surged 15.7% to US$61.97 billion. Last year, Sino-Brazil bilateral trade rose 4.9% year-on-year to US$171.49 billion, according to the Chinese government. “They will also further facilitate bilateral trade and investment.” “These arrangements will help enterprises and financial institutions in both countries conduct cross-border transactions using the renminbi,” Mao Ning, a spokesperson of the Chinese foreign ministry, said Thursday. In early February, the People’s Bank of China (PBoC) and the Brazilian central bank signed a memorandum of cooperation to establish renminbi clearing arrangements in Brazil. The announcement came after China and Brazil reportedly struck a deal to allow companies to settle their trade transactions in the two countries’ own currencies, ditching the United States dollar as an intermediary. The bank will become the first direct participant in the CIPS in South America while the Brazilian branch of the Industrial and Commercial Bank of China will become the renminbi clearing bank in Brazil, said ApexBrasil. China and Brazil reach RMB-based trade deal – Asia Times Close Search for:Ī Rio-based Chinese bank will be connected to China’s cross-border interbank payment System (CIPS), an alternative to SWIFT, to support trade settlements between China and Brazil in renminbi.īanco BOCOM BBM, a subsidiary of the Bank of Communications, China’s fifth largest bank, will be linked to CIPS to reduce the costs of commercial transactions with the direct exchange between Brazilian real and Chinese yuan, according to a statement released by the Brazilian Trade and Investment Promotion Agency (ApexBrasil).
0 Comments
Leave a Reply. |