China takes another step to reduce its dependence on the US dollar, and wants to trade in local currencies with Brazil.
Brazil and China will work towards using their own currencies in trade transactions rather than the US dollar, according to Brazilâ€™s central bank and aides to Luiz InÃ¡cio Lula da Silva, Brazilâ€™s president.
The move follows recent Chinese challenges to the status of the dollar as the worldâ€™s leading international currency…..â€œCurrency swaps are not necessarily trade related,â€ the official said. â€œThe funds can be drawn down for any use. What we are talking about now is Brazil paying for Chinese goods with reals and China paying for Brazilian goods with renminbi.â€
Japan had made a similar move a few weeks ago.