Serious issue. US policy has been too heavy-handed, making countries want to ditch the dollar.
— Elon Musk (@elonmusk) March 29, 2023
... which we first defined a decade ago, not a day goes by without some modest or not so modest shift toward a world in which the US currency - fully weaponized after February 2022 for the entire world to see and fear - is no longer the world's reserve. And today was no exception.
According to the Brazilian government, China and Brazil have reached a deal to trade in their own currencies, ditching the United States dollar as an intermediary entirely, AFP reported.
The deal, Beijing’s latest salvo against the almighty greenback, will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade which amounts to $150 billion per year, and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the US dollar. In doing so China extends its bilateral, USD-exempting currency arrangements beyond countries such as Russia, Pakistan and Saudi Arabia to now include the Latin American exporting powerhouse.