Brazil and China are ditching the US dollar to make trade deals in their currencies, as revealed last night by a trade body ApexBrasil.
Hong Kong-based Journalist and author Nury Vittachi posted an update on his Social media handle on Thursday, March 30, 2023, informs to make trade deals in their currencies; Brazil and China are scrapping the US dollars.
At the same time, ASEAN Finance Ministers and Central Bank Governors are meeting this week in Indonesia to discuss ways to reduce dependence on the US Dollar, Euro, Yen, and British Pounds sterling. Members want to move to settlements to local currencies.
Also this week, Chinese national oil company CNOOC and France’s Total Energies said they completed a major Liquid National Gas deal with payment settled in yuan, Shanghai’s Petroleum and Natural Gas Exchange on Wednesday, March 29, 2023. Moving away from Western payment systems is necessary to protect transactions from “possible geopolitical repercussions,” said Joko Widodo, leader of Indonesia, the world’s fourth most populous nation.
According to Nury Vittachi, These are the latest in a string of deals to remove the American currency’s stranglehold on the global economy. China has similar arrangements with Pakistan, Russia and other countries.
Asia Times’ David P. Goldman’s tweet on Twitter on Thursday, March 3, 2023. “This is happening a lot faster than I thought it would,”
Although the US dollar still dominates international trade, moves against it are accelerating—and bank instability in the West is a factor.
“A decision by ASEAN to disengage from the West’s currencies and especially the US dollar and Japanese Yen will put pressure on Tokyo especially as to where its future trade alignments are – with the United States, or with Asia,” said Chris Devonshire-Ellis, writing in Asian Briefing on Wednesday, March 29, 2023.
