Brazil and China Drop US Dollar

Brazil and China struck a deal to ditch the U.S. dollar in favor of RMB Yuan in trade transactions, said media outlets.
The agreement, announced Wednesday, will enable the two parties to conduct their trade and financial transactions directly, exchanging RMB Yuan for Brazilian Real and vice versa, rather than first converting their currencies to the U.S. dollar.
The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to “reduce costs” and “promote even greater bilateral trade and facilitate investment.”
China is Brazil’s largest export market, accounting for more than a third of all exports.
Brazil is also the largest recipient of Chinese investment in Latin America, driven by spending on high-tension electricity transmission lines and oil extraction.