for an additional three-year period and expanded from its initial $5 billion to $10 billion in June. Brazilian Finance Minister Haddad explained that the mechanism to be used is a direct conversion from the yuan to the real by the state-owned Banco do Brasil that will amount to up to $140 million.
“Brazilian exporters can have some flow of sales of their products with 100 percent guarantee,” Haddadlast week. “For Brazil, there is no problem, because the exchange rate will be made with the yuan per [Brazilian] real and this also assures the National Treasury that there is no risk of default.” While Argentina is Brazil’s third largest business partner after China and the United States, it is the main buyer of Brazilian industrialized products,Télam further reported that the proposal of paying for Brazilian imports in yuan came from the Brazilian government. According to the Argentine state-owned news agency, the agreement will seek to “maintain the rhythm of income of Brazilian inputs that are essential for the national industry,” while also “optimizing” the amount of limited U.
Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter