Although Brazil and China reached an agreement to conduct trade in their own currencies rather than the U.S. dollar, the Chinese yuan is far from becoming a global reserve currency, according to Milton Ezrati, chief economist at Vested, a New York-based communications firm.
Beijing hails the agreement as a step toward global de-dollarization and an increase in the internationalization of the yuan.
Wang Youming, senior research fellow and director of the Department for Developing Countries Studies at the China Institute of International Studies, told Chinese state-run media Global Times that Washington’s “irresponsible monetary policy, especially continuous interest-rate hikes, has led to depreciation of the Brazilian real and increased costs in transactions.”…