Brazil proposes to guarantee exports to Argentina in Chinese currency

On the 23rd of August, Brazil’s Finance Minister, Fernando Haddad, said that the Brazilian government has submitted a proposal to the Argentine government so that the two countries can use the yuan, China’s official currency, in commercial transactions. According to Haddad, if the measure comes into force, it could increase the volume of exports from Brazil to Argentina.

At first, Haddad explained, Argentina would pay for purchases of products from Brazil in yuan, and the Banco do Brasil branch in London would convert the Chinese currency into reais, before sending the amounts to Brazilian exporters. As it is being tested, conversions would initially be limited to between US$ 100 million and US$ 140 million.

According to Haddad, the operation would increase security for Brazilian exporters. According to the minister, both the National Treasury and Banco do Brasil have agreed to the proposed mechanism.

(Source: Agência Brasil)