Substantial_L1ght t1_je8q05m wrote on March 30, 2023 at 5:59 AM

This is largely symbolic. There are only so many Brazilian Reals China can accumulate before they will need to get rid of it on the open market and that means they will eventually have to translate Reals to US dollars.

In any trading arrangement, as long as one side is exporting more than the other - in this case China - they will eventually need to use the reserve currency or be stuck with a lot of fiat currency that can’t be used to buy anything.

Dimas166 t1_je9ochp wrote on March 30, 2023 at 1:01 PM

Brazil exports more to China than it imports, so its the other way around, and chinese currency will be accepted in trade with other countries around the world.

Substantial_L1ght t1_je9u3gy wrote on March 30, 2023 at 1:46 PM

Interesting, thank you.

jfy t1_jedai03 wrote on March 31, 2023 at 4:23 AM

Believe it or not, the USA is in the minority in having a trade deficit with China. Most countries it’s the other way round

[deleted] t1_jeddmbn wrote on March 31, 2023 at 4:56 AM

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