Following the 4th Meeting of the China-Brazil Strategic Financial Co-operation Working Group, held recently in Shanghai, the People’s Bank of China released a statement highlighting the potential for co-operation with Brazil’s payment systems. The meeting was attended by Gabriel Galípolo, Governor of the Central Bank of Brazil, and also served to signal interest in deepening mechanisms for international transactions between Brazil and China.

In the statement, the People’s Bank of China said that representatives of the two countries discussed progress on issues related to the use of local currencies, bilateral investment and cross-border payments. Among the topics discussed, particular attention was given to the potential of the Local Currency Payment System (SML) and co-operation in payment systems to facilitate bilateral trade.

According to the statement, the aim is to provide safer and more efficient payment and clearing services for commercial operations between Brazil and China. At present, the SML is used by Mercosur countries and allows transactions to be carried out in local currencies, reducing dependence on intermediary currencies such as the US dollar.

(Source: Brasília In Foco, 21 June)