Saturday, July 12, 2025

Latest

Brazil, China Agree to Dump Dollar, Will Trade in Local Currencies Instead

China and Brazil have decided to forego using the US dollar, and will instead trade using their respective currencies.

China and Brazil have signed a deal to use local currencies instead of the US dollar for bilateral trade in an attempt to boost investment between the two countries and reduce reliance on the world’s reserve currency. “The expectation is that this will reduce costs… promote even greater bilateral trade and facilitate investment,” reads a statement from the Brazilian Trade and Investment Promotion Agency.

The deal is significant as China is Brazil’s fifth biggest trading partner, while the latter country is the largest economy in South America. By using their own currencies, the two countries can avoid geopolitical risks associated with the greenback, particularly during times of heightened tensions between the US, Russia, and China. The move also highlights China’s efforts to deepen economic ties with emerging markets, particularly in Latin America, as it seeks to expand its influence and reduce its dependence on the West.

Similarly, the Association of Southeast Asian Nations (ASEAN) is also seeing opportunities in reducing trade in vulnerable western currencies, and is currently discussing dropping the US dollar, euro, pound, and the yen. “Efforts to reduce dependence on major currencies through the Local Currency Transaction (LCT) scheme will be discussed. This is an extension of the previous Local Currency Settlement (LCS) scheme that has already begun to be implemented between ASEAN members,” a report from ASEAN said.


Information for this briefing was found via the Associated Press and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Fitch Ratings Reaffirms China’s A+ Credit Rating Amid Strong Coronavirus Recovery

While much of the US economy continues to struggle through the coronavirus pandemic, it appears...

Wednesday, July 29, 2020, 08:43:00 PM

Brazil’s Crypto Bill Now Awaits Approval By Bolsonaro, Who Once Said “I Do Not Know What Bitcoin Is”

Brazil’s lower house of Congress approved a bill aimed at boosting oversight of the country’s...

Wednesday, November 30, 2022, 10:49:00 AM

Gold Prices Rebound in 2021 as US Dollar, Real Yields Continue to Plummet

Gold prices soared to their highest levels in nearly two months today as a weakened...

Monday, January 4, 2021, 02:30:00 PM

Lithium Prices Plunge 90% from 2022 Peak as Supply Outpaces Demand

Lithium prices have plummeted nearly 90% from their 2022 peak, as supply outpaces demand in...

Thursday, September 19, 2024, 10:52:25 AM

El Salvador Vice President Felix Ulloa Says China ‘Offered To Buy’ Foreign Debt

China offered to help El Salvador refinance its external bond debt, according to Vice President...

Wednesday, November 9, 2022, 12:02:00 PM