The recent decision by the Chinese government to raise the value of its currency, the yuan, by 2.1% was not seen as having much effect on trade relations with Brazil.
According to the acting minister of Development, Ivan Ramalho, the modification was small and will not change anything.
“We see this more as a signal that the Chinese will permit the yuan to float. That is good for us in the mid- and long-term, because we can export more manufactured goods to them as they become cheaper for Chinese consumers,” said Ramalho.
He added that basic product exports, such as soy and iron ore, which are Brazil’s biggest export items to China, are exported under the terms of contracts. New contracts reflecting the new situation will take time.
Ramalho pointed out that Brazilian exports to China are concentrated in basic products and that the modification in the exchange rate will be an incentive to diversify.
“Although China is highly competitive in many areas, it is a net importer. We can sell them machinery, airplanes and vehicles, for example,” concluded Ramalho.