While the Western financial world panics out of the Euro and into the dollar, the dollar’s death by a thousand cuts continues as Brazil & China have announced a bilateral $30 billion trade accord to use the Real and Yuan and drop the US dollar.
As TheBRICPost reports, the deal will cover $30 billion in trade for 3 years:
In a major boost to economic ties between the two countries, China and Brazil have signed a new bilateral accord to use their national currencies in bilateral trade in a deal that will cover the equivalent of up to $30 billion in trade exchanges per year, for three years.
This announcement comes ahead of a crucial meet of the five heads of state in Durban tomorrow.
The deal was inked by the Chinese and Brazilian central bank governors and finance ministers in Durban on Tuesday.
Brazilian President Dilma Rousseff is going to meet with her BRICS counterparts in Durban.
Brazil has asserted that China is a key partner for the Latin American economy.
“Brazil and China are working to allow trade between countries to be carried out in local currency to protect from dollar fluctuations,” said Fernando Pimentel, Brazil’s minister of development, industry and foreign trade.
A global reserve currency does not die overnight. It suffers a thousand cuts from deals such as this until one morning the world wakes up and finally realizes that the entire monetary paradigm has changed.