“Americans Will Be Poor Overnight!”

Jiang Momin

1 year ago

So, let’s get straight to the point, China and Brazil have made a new deal that completely bypasses the US dollar as an intermediary for bilateral trade.

What the f*** are they thinking, right?

Well, here’s the deal — China and Brazil have announced a new agreement that allows them to trade in their own currencies.

This move is expected to promote even greater bilateral trade between the two countries, and it will enable them to conduct massive trade and financial transactions directly, exchanging Chinese Yuan for Brazilian Real and vice versa.

Now, this move by China is part of its efforts to establish itself as the top rival to US economic hegemony.

Brazil, on the other hand, is shifting away from the traditional reliance on the dollar as the world’s primary currency. In fact, last year, China was Brazil’s biggest trading partner, with a whopping USD 150.5 billion in bilateral trade.

According to the Brazilian Trade and Investment Promotion Agency, ApexBrasil, this deal is expected to reduce costs and promote even greater bilateral trade. However, it could also have significant implications for the global economy.

If other countries follow suit and start conducting their trade and financial transactions in their own currencies, it could potentially undermine the dollar’s position as the world’s primary currency.

But here’s the thing, this move is not entirely new, as China already has similar currency deals with Russia, Pakistan, and several other countries.

The new currency deal follows a preliminary agreement reached by the two countries in January and was announced after a high-level China-Brazil business forum in Beijing.

The Industrial and Commercial Bank of China and Bank of Communications BBM will execute the transactions, officials said.

So, it will be interesting to see how other countries respond to this development and whether they too will start to bypass the US dollar as an intermediary in their bilateral trade transactions.

This move represents a significant shift in the world of international trade and finance, and it could have far-reaching implications for the global economy.

That’s all for today’s discussion. Keep an eye on this space for more updates on this development and other important events in the world of international trade.

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