China and Brazil take the first step

According to Taiwan's "Wangbao" website reported on November 27, China Development Bank recently signed a loan agreement of 5 billion yuan with Brazil's National Bank for Social and Economic Development (BNDES), becoming the first foreign exchange business carried out by BNDES. Foreign media observed that the move is seen as the first step for the two countries to expand the exchange of alternative currencies to the US dollar.

The report quoted Reuters as saying that China and Brazil signed 37 cooperation agreements covering different areas, including loan agreements between China and two state-owned development banks in Brazil. BNDES said in a statement that the three-year loan agreement will provide credit for the bank's projects in different sectors. Aloizio Mercadante, BNDES's president, said the bank's continued international expansion and diversification of Brazilian capital would facilitate lending for projects, and renminbi loans would provide "natural exchange rate protection" for Brazilian entrepreneurs, especially exporters.

Reuters pointed out that the signing of the loan agreement by the state-owned Development Bank of China and Pakistan is seen as the first step for the two countries to expand the exchange of alternative currencies to the US dollar.

In fact, this is not the first time that Brazil has discussed "de-dollarization." During a visit to Shanghai in April last year, Brazilian President Luiz Inacio Lula da Silva expressed his doubts about why all countries use dollars for settlement.