Finance Minister Fernando Haddad announced that Brazil has approached Argentina with a proposal to settle Brazilian exports in the Chinese yuan.
Haddad commented, “We have presented the Argentine government with a proposal ensuring Brazilian exports in yuan, with Brazil’s Bank guaranteeing a conversion to Brazilian reais from this assurance.”
He added that such an arrangement would benefit Brazilian exporters as they would have a full guarantee on their sales flow.
Moreover, Brazil would have no complications, as the conversion from yuan to reais would be seamless.
This would also provide assurance to the National Treasury about the absence of default risk.
Haddad disclosed these details during a press conference in Johannesburg, South Africa, where the BRICS Summit is taking place.
He mentioned that the National Treasury found the guarantee suitable, and Brazil’s Bank has given its nod to the proposal. Brazil is now awaiting Argentina’s response to the suggestion.