Commentary
According to a statement by the Brazilian government, Brazil and China reached an agreement on March 29 to conduct trade in their own currencies rather than the U.S. dollar.
No details have been released on how this will work or if it applies to all trade between the two countries. All that has been made public is that the transactions will be processed by the Industrial and Commercial Bank of China (ICBC) and Brazil’s Bank of Communications (BBM).
ICBC will establish a clearing house in Brazil that will allow yuan transactions. Since the reports say that the clearing house will be constructed, it seems these trades are not happening yet. Additionally, no start date has been provided….