![](https://i.imgur.com/CLvY2jA.png")
02-04-2023, 02:03 PM
31 March 2023
The OctaFX experts comment on the deal announced this week by the Chinese and Brazilian governments on direct payments that will deprive the U.S. of more than US$150 billion in liquidity.
......
many countries are looking for alternatives to reduce their dependence on the U.S. currency. This trend has accelerated since the U.S. and other Western countries imposed sanctions against Russia over the Russia-Ukraine conflict in 2022. For instance, Brazil and Argentina have discussed creating a common currency for South America, the UAE and India are negotiating the use of rupees for commodity trade, and Saudi Arabia has announced that it is open to trading in currencies other than the U.S. dollar.
......
Another step toward de-dollarisation was taken by Brazil and China this week as they announced an upcoming deal to carry out trade and financial transactions directly, bypassing the U.S. dollar.
......
the agreement will boost the use of the yuan for cross-border transactions between businesses and financial institutions, as well as simplify trade and investment between the two countries. China and Brazil will carry out transactions directly through the exchange of yuan for reais and vice versa.
......
Despite the active pursuit of de-dollarisation, it is unlikely that the U.S. currency will lose its dominant status owing to the significant dollar reserves held by major central banks worldwide. However, a shift towards de-dollarisation is already evident from the growing purchases of gold by central banks, which serves to reduce their exposure to the U.S. dollar.
https://www.media-outreach.com/news/mala...x-analysis
The OctaFX experts comment on the deal announced this week by the Chinese and Brazilian governments on direct payments that will deprive the U.S. of more than US$150 billion in liquidity.
......
many countries are looking for alternatives to reduce their dependence on the U.S. currency. This trend has accelerated since the U.S. and other Western countries imposed sanctions against Russia over the Russia-Ukraine conflict in 2022. For instance, Brazil and Argentina have discussed creating a common currency for South America, the UAE and India are negotiating the use of rupees for commodity trade, and Saudi Arabia has announced that it is open to trading in currencies other than the U.S. dollar.
......
Another step toward de-dollarisation was taken by Brazil and China this week as they announced an upcoming deal to carry out trade and financial transactions directly, bypassing the U.S. dollar.
......
the agreement will boost the use of the yuan for cross-border transactions between businesses and financial institutions, as well as simplify trade and investment between the two countries. China and Brazil will carry out transactions directly through the exchange of yuan for reais and vice versa.
......
Despite the active pursuit of de-dollarisation, it is unlikely that the U.S. currency will lose its dominant status owing to the significant dollar reserves held by major central banks worldwide. However, a shift towards de-dollarisation is already evident from the growing purchases of gold by central banks, which serves to reduce their exposure to the U.S. dollar.
https://www.media-outreach.com/news/mala...x-analysis
![[Image: Screenshot-20230402-202645-com-android-c...718222.jpg]](https://i.ibb.co/NVYL3Gw/Screenshot-20230402-202645-com-android-chrome-edit-3451060718222.jpg)
