China and Brazil Abandon the Dollar in Bilateral Transactions

The Brazilian government announced that it has reached an agreement with China to abandon the dollar and use their local currencies for bilateral trade. This agreement allows China, the largest competitor to U.S. economic dominance, and Brazil, the largest economy in Latin America, to conduct their massive trade transactions directly, exchanging yuan for reais and vice versa instead of relying on the dollar. The Brazilian Trade and Investment Promotion Agency (ApexBrasil) stated, "It is expected that this will reduce costs and further boost bilateral trade and facilitate investment." China is Brazil's largest trading partner, with bilateral trade valued at approximately $150 billion last year.