RMB becomes Brazil’s second-largest international reserve currency

The renminbi (RMB) has overtaken the euro to become Brazil’s second-largest international reserve currency, according to the latest International Reserve Management Report released by the central bank of Brazil.

The report showed that the RMB accounted for 5.37% of Brazil’s foreign exchange reserves by the end of 2022, surpassing the euro’s share of 4.74%, which reflects the deepening economic ties between Brazil and China.

The Chinese currency became Brazil’s foreign exchange reserve in 2019. Over the past two years, Brazil’s RMB reserves have grown significantly. In 2021, the RMB’s share of its foreign exchange reserves increased to 4.99%, up from 1.21% the previous year.

The RMB’s share of the world’s foreign exchange reserves ranks fifth among all reserve currencies, following the US dollar, the euro, the Japanese yen and the British pound, according to the Currency Composition of Official Foreign Exchange Reserve (COFER) released by the International Monetary Fund (IMF).

(Source: Exame)