Sino-Brazilian currency clearing mechanism being considered

The financial regulators in Brazil and China are studying the possibility of setting up a mechanism for direct currency clearing, Xinhua reports, citing Brazilian Vice-president Hamilton Mourão.

The Chinese government-run news agency quotes Mr Mourão as saying in an interview that the mechanism would reduce the cost of investment by one country in the other, and make Brazilian exports to China cheaper.

Mr Mourão said preparations were being made for a meeting in Brazil next year of the China-Brazil High-Level Coordination and Cooperation Committee.

Mr Mourão, who has responsibility for the Amazon region of Brazil, will present to the Chinese authorities a list of projects there which require investment in infrastructure, farming that emits little carbon, and forest management, among other things, Xinhua quotes the vice-president as saying.