Brazil and China ditch the US dollar for direct currency exchange

Brazil and China have recently made an agreement to use their own currencies instead of the US dollar in trade transactions. This means that they can now conduct trade and financial transactions directly, exchanging their currencies without first converting them to the US dollar.

The Brazilian Trade and Investment Promotion Agency has stated that this new arrangement will lower costs and promote even greater bilateral trade, making it easier for businesses to invest in each other's countries.

China is Brazil's biggest trading partner, accounting for over a fifth of all imports, with the US coming in second. Additionally, China is Brazil's largest export market, making up more than a third of all exports.

China became Brazil's main trading partner in 2009, overtaking the US. Presently, Brazil is the largest recipient of Chinese investment in Latin America.

Overall, this deal between Brazil and China has the potential to increase trade between the two countries, which can stimulate economic growth and create job opportunities. However, it remains to be seen how this change will impact other nations, particularly the US, which has traditionally been a dominant player in global trade. Nevertheless, this move away from the US dollar could signify a shift towards greater economic independence for Brazil and China.

The impact of this deal between Brazil and China on cryptocurrencies is uncertain, as it is not directly related to them. However, some experts believe that it could potentially be a positive development for cryptocurrencies, particularly those that are designed for cross-border transactions.

One possible outcome of this agreement is that it could reduce the demand for US dollars in international trade, which could weaken the dollar's status as the world's dominant reserve currency. This could create a need for alternative currencies or payment systems, including cryptocurrencies, that could potentially fill the gap.

Moreover, the use of cryptocurrencies in international trade has already been growing in popularity, with many businesses exploring their potential to reduce costs and increase efficiency. As more countries shift away from the US dollar and towards alternative currencies, the use of cryptocurrencies could become more widespread.