Suzano, the largest hardwood pulp producer in the world, is considering deals with China priced in the yuan, signaling that some commodity markets may be joining the shift away from the dollar.
China’s currency is growing in importance and smaller customers in the country are requiring that deals are transacted in yuan, said CEO of Suzano, Walter Schalka in an interview at Bloomberg headquarters in New York. China is the largest buyer of commodities in the world and accounts for 43 percent of the pulp exported by Suzano.
While the dollar remains dominant, the use of the renminbi in contracts for various things from oil to nickel is picking up speed. “China will become more relevant in the global market, I have no doubts,” he said.