Brazil announced that it has reached an agreement with the mainland, and bilateral trade can be settled in local currency. The picture shows the China-Brazil Business Seminar held in Beijing on the 29th. Brazilian Trade and Investment Promotion Agency
The Brazilian Ministry of Foreign Affairs quoted a statement from the Brazilian Trade and Investment Promotion Agency (Apex Brasil) on the 29th to announce that Brazil has reached an agreement with the mainland to conduct bilateral trade transactions in local currency instead of the US dollar.
@Observer.com reported that according to the agreement, the foreign trade and financing business between Brazil and the mainland can be carried out by converting the real into RMB, and vice versa, thereby avoiding the need to convert the real into dollars in the transaction. Condition.
Publicly available data shows that ApexBrasil was founded in 1997 and became an autonomous non-profit entity funded by the private sector and supervised by the Brazilian federal government in 2003. In 2016, the agency was officially linked to the Brazilian Ministry of Foreign Affairs, and is committed to promoting Brazilian products and services abroad, attracting foreign direct investment, and supporting local companies and enterprises to explore overseas markets.
China, Brazil establish trade partnership
The China-Brazil Business Symposium, co-hosted by ApexBrasil, China Council for the Promotion of International Investment, China-Brazil Entrepreneurs Council, and the National Confederation of Industry of Brazil, was held in Beijing on March 29. ApexBrasil pointed out that in the important agenda of the talks with more than 30 strategic economic industries in Brazil, ApexBrasil formally established a partnership with the Nordic Innovation Center (Venture Cup China) and Beijing Hycore Innovation.
In addition, Brazilian companies such as BMV Global, Vale, and pulp company Suzano have also signed relevant agreements to promote innovation, sustainable development and more cooperation in different fields of the Brazilian and mainland economies.
As a traditional partner of ApexBrasil, the Nordic Innovation Center has held three consecutive "Innovation Week" activities with ApexBrasil, as well as a soft landing plan to help Brazilian companies enter the Chinese mainland market. The Nordic Innovation Center signed an agreement with Beijing Haigao Innovation Technology to formalize a cooperative relationship between the two parties to support Brazilian start-ups to conduct business in the mainland.
Future Bilateral Trade Use Local Currency
Not long after the China-Brazil business seminar ended, the Brazilian Ministry of Foreign Affairs tweeted that more than 20 agreements had been reached in the seminar against the background of Brazilian President Lula’s planned visit to China, and the relevant documents were attached. Contents of the ApexBrasil website information.
The website shows that Brazil has reached an agreement with the mainland that future bilateral trade will use its own currency instead of the US dollar, that is, the real and the renminbi can be directly exchanged and settled in trade. The business will be in charge of BBM Brazil and Industrial and Commercial Bank of China (Brazil), which are controlled by China Bank of Communications.
"Our expectation is to reduce trade costs and further facilitate bilateral trade and investment," Apex Brasil said.
According to the news released by Apex Brasil, China is Brazil's main trading partner. In 2022, the bilateral trade volume between China and Brazil will reach 150.5 billion U.S. dollars, setting a record, of which Brazil's exports will be 89.7 billion U.S. dollars and imports will be 60.7 billion U.S. dollars.
In addition, Brazil is also the main country for mainland investment in Latin America, accounting for about 48%. From 2007 to 2020, China's investment in Brazil was US$70.3 billion, making it the eighth largest investor in Brazil, surpassing Japan, South Korea and India.
The stock of Brazilian direct investment in the mainland grew by 114% between 2012 and 2021, reinforcing the growing importance of the Asian country as a destination for the internationalization of Brazilian companies.
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