O chinese yuan surpassed the euro and became the second most important currency in Brazilian international reserves, according to a report by the central bank this Friday, in a reflection of the deepening of the economic ties of the Brazil with its largest trading partner.
Until 2018, the yuan was absent from the country’s foreign reserves and now represents 5.37% of the total (end-2022 data), surpassing the 4.74% share of the euro.
O dollar continues to dominate and was equivalent to 80.42% of the country’s total international reserves at the end of last year.
At the beginning of this year, the China and the Brazil moved to reduce the dominance of the dollar, with an agreement on establishing yuan offsetting measures to facilitate bilateral trade and investment.
China is the main buyer of iron oresoybeans, meat, sugar and cellulose exported by Brazil.
In its annual report on reserves, the BC reported that there were no significant variations in the composition of the portfolio compared to the previous year, when it sought to diversify its strategic allocations, which include increasing exposure in yuan and also in gold.
Brazil’s total international reserves fell to US$324.70 billion in 2022 from US$362.2 billion in the previous year, due to a 7.45% loss in portfolio returns caused by interest rate hikes in the United States United States and the appreciation of the dollar against other currencies in the period.
Source: Moneytimes
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