It is understood that Industrial and Commercial Bank of China (Brazil) Co., Ltd. has recently successfully processed the first cross-border RMB settlement business, and both trading parties no longer use the US dollar as the intermediate currency, demonstrating significant advantages in terms of clearing efficiency and exchange costs.

In February of this year, the People's Bank of China announced the signing of a memorandum of cooperation with the Brazilian Central Bank to establish a RMB clearing arrangement in Brazil, allowing enterprises and financial institutions from both countries to use RMB for direct settlement. The successful implementation of this cross-border RMB settlement business marks that enterprises in both countries have more currency options in trade exchanges, which helps to increase the proportion of RMB in trade and investment between the two countries, injecting new vitality into economic and financial cooperation.

It is understood that China is Brazil's largest trading partner. According to a report released by Standard&Poor's Global Market Intelligence this month, the total bilateral trade between China and Brazil in 2022 was $150 billion, an increase of 10.1% compared to the previous year.

In recent years, bilateral economic and trade exchanges have become increasingly close, and the amount of cooperation has been continuously increasing. The Brazilian Central Bank announced on March 31st that the Chinese yuan has surpassed the euro as the country's second largest international reserve currency.