• Categories
  • Archives

No More Dollar. Brazil and China to Trade in Real and Yuan from Now On

Brazilian Lula and Chinese Hu Jintao In order to promote trade, investments and cooperation Brazil and China signed Tuesday, May 19, in Beijing, 13 agreements. Moreover, Brazilian state-controlled oil and gas multinational Petrobras got itself a US$ 10 billion Chinese loan. Both countries also agreed that bilateral trade in the near future is to be done using the real and the yuan.

The accords were signed in the framework of Brazilian president Luiz Inácio Lula da Silva official three-day visit to China where he arrived with several ministers and a delegation of 240 businessmen with the purpose of consolidating the "strategic partnership" with Beijing.

Under the terms of the agreement China, the world's second-biggest energy consumer, will provide the loan to Petrobras, which will supply 150.000 barrels of crude a day this year and 200,000 barrels in 2010, said Petrobras CEO José Sérgio Gabrielli.

"This visit will create new opportunities for the development of bilateral relations between China and Brazil" said Chinese President Hu Jintao at the Great Hall of the People where the two nations signed 13 accords.

Petrobras needs to find alternative sources of financing after crude prices plunged about 60% from a record 147.27 USD a barrel last year. Petrobras plans to spend 174.4 billion USD to explore its so-called pre-salt fields over a five-year period.

Petrobras announced in November 2007 the discovery of the Tupi offshore field, which may hold up to 8 billion barrels of oil, making it the largest find in the Americas since Mexico's Cantarell. The corporation plans to pump 1.8 million barrels of oil a day from the fields by 2020, Gabrielli has said.

The Brazilian delegation is seeking to attract investment and open China's markets to Brazilian exports beyond oil, soy and iron to help overcome the country's sharpest economic contraction on record. China is securing energy resources to power its economy the world's third-largest, by offering loans to oil-producing countries including Russia, Venezuela and Kazakhstan.

"The systemic challenges facing the world economy underscores the growing responsibilities of emerging economies" President Lula da Silva wrote in an article published in the state-owned China Daily.

China became Brazil's leading trade partner this year after the global recession choked sales to the US. Brazil's economy, Latin America's largest, may contract by the most in 19 years as the global recession prompts domestic manufacturers to scale back output.

The two countries are also working to coordinate financial policy matters and research ways to conduct trade in their respective local currencies, the Yuan and Real, said Brazil's Foreign Minister Celso Amorim.

The discussions are the latest signal that developing nations are seeking to reduce their reliance on a weakening US dollar. Talks have been focused on improving financial service systems, Amorim said.

Brazil and China must build a "more just and fair international order," the Brazilian president wrote in a commentary published in the official China Daily on Tuesday. Brazil and China have a "shared responsibility to help bring about the fundamental reforms in global governance that the world so urgently needs," he wrote without mentioning the currency issue.

China PetroChemical Corp., the nation's largest refiner, will also explore for oil in two areas in Brazil, Zhang Goubao said the head of the National Energy Administration.

Mercopress

Tags:

  • Show Comments (2)

  • forrest allen brown

    you will pay dearley later brazil
    with booth countries setting there own value of there money .
    the big loosers wil be the people in the long run .

    soon china will run brazil like a sub country with subhumans to do the dirty work .
    it will even get to the point where chinese business owners will build companys in brazil and force the
    brazilian workers to work like and for the same as the chinese colies do

  • ch.c.

    “No More Dollar. Brazil and China to Trade in Real and Yuan from NOW ON ”
    http://www.bloomberg.com/apps/news?pid=20601086&sid=abIG6z0BzwoY&refer=latin_america

    LAUGHS…LAUGHS…LAUGHS…LAUGHS…LAUGHS…LAUGHS…LAUGHS !!!!

    Pretentious junkies are all over…IN BRAZIL !!!!

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Itaíº Doubles Profit to US$ 4.8 Bi Becoming Brazil’s Most Profitable Bank

Brazil's Itaú bank obtained record profits of 8.474 billion Brazilian reais (US$ 4.8 billion) ...

São Paulo, Brazil, Finds Out It’s Not Easy to Be Green

Brazilian merchant Lizete Araújo da Silva, 51, has worked for approximately ten years in ...

Brazil: US Firm Acquires Jockey Clubs’ Broadcast Signals

Carnegie Cooke and Co., Inc. announced the acquisition of the domestic racing broadcast signal ...

Art and Social Inclusion Out of Discarded Wood in Brazil

In the hands of five artisans from the outskirts of São Paulo, discarded wood ...

MST invades a farm in Pernambuco, Brazil

Brazilian Police Arrest Gunmen Hired to Kill Landless Leader

The Municipal Police of Aliança of Pernambuco state's Northern Zona da Mata, in Brazil, ...

A London Touch to Tour São Paulo

Looking out at the city as the wind caresses your face, the sun or ...

US Curbs on China Boost Brazil’s Printing Sector

Brazilian exports of printing material increased 60.21% in the first half of the year ...

Musical Brazil: Relatively Speaking, It’s All in the Family

As regular readers of the Brazzil website know, I have a profound interest in, ...

Brazil’s Micro Credit Program a Hit. Default: 1.2%.

Within the scope of a new credit program for productive activities, in Brazil, established ...