Last updated on April 5, 2023
| Brazil and China have made a deal to exchange payments without first converting their currencies into US dollars. The deal marks the latest victory for Beijing’s long-term drive to establish the yuan as the dominant international currency and has revived concerns over the future of the US dollar as the backbone of the global economy. Beijing views the move as a way to insulate itself from international pressure, while the Brazilian Trade and Investment Promotion Agency described the deal as promoting greater bilateral trade. Some analysts believe global efforts to realign currency holdings are inevitable, while others doubt their lasting impact. |
Complex Terms:
- Yuan – The currency of China
- Bilateral trade -The exchange of goods and services between two countries
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