Chinese experts optimistic about trade with Brazil in local currencies

The arrangements will help enterprises and financial institutions from both sides use the RMB for cross-border trade, and facilitate bilateral trade and investment, Chinese foreign ministry spokeswoman Mao Ning said last week.

Vice governor of the People's Bank of China Pan Gongsheng recently said financial infrastructure associated with the internationalisation of the RMB should be further improved and the country will further improve its trading and settlement system for cross-border investment and financing using the currency.

The Chinese renminbi is speeding up in expanding its global use, a trend that will help build a more resilient international monetary system, one that is less dependent on the US dollar and more conducive to trade growth, Chinese experts were quoted as saying by state-controlled media outlets.

The financial sanctions adopted by the United States since the start of the Ukraine crisis have triggered a "crisis of confidence" for the dollar to some extent, boosting the global use of other currencies, including the RMB, Zhu Min, vice-chairman of the China Center for International Economic Exchanges, said on the sidelines of the Boao Forum for Asia Annual Conference.

The trend is under way that more economies are willing to use the RMB in clearing and payments, which is a ‘significant step’ for the Chinese currency to internationalise and reflects the international community's growing trust in it, Zhu added.

With US financial sanctions hurting the dollar's status as a global currency, many countries, such as Brazil, Saudi Arabia and Russia, are pursuing an alternative to the existing dollar-centric system, contributing to the rising global use of the RMB, said Hong Hao, chief economist at GROW Investment Group, a China-based global asset management company.

ALCHEMPro News Desk (DS)