Eldorado Brasil has sent its first pulp shipment in yuan to China. Instead of dollars, they used the Chinese renminbi for payment.
The company’s CFO, Fernando Storchi, announced the news. The Bank of China helped with this pilot move.
The aim is to open new credit options in China. The shipment was sent on the 25th of this month. It had 43 containers.
China buys 40% of the company’s pulp. It also has Eldorado Brasil‘s largest office abroad.
This choice of currency matches the goals of BRICS nations. They are Brazil, Russia, India, China and South Africa.
They want to use less U.S. dollars for global trade. Instead, they plan to use their own currencies.
The move shows changes in global trade. Both companies and countries are rethinking the money they use for trade.
This isn’t Eldorado Brasil’s first venture into innovative trading. In the past, the company has explored other markets and payment methods.
But using the Chinese renminbi is a major step. It signifies growing ties between Brazil and China.
Brazil and China have been trading partners for years. Their trade mostly focuses on raw materials. Brazil sends soybeans, iron ore, and now pulp to China.
China exports manufactured goods to Brazil.
The trade relationship is vital for both countries. For Brazil, China is a big market that buys its raw materials.
For China, Brazil is a key supplier. It provides what China needs for its booming industries.
The use of the renminbi has its own history too. China has been pushing for its global use. It aims to make the renminbi an international currency.
This would give China more control over its trade deals.