Still without Lula, Chinese press celebrates trade in yuan and Dilma – 03/30/2023 – Nelson de Sá

In a press conference, the spokeswoman for the Chinese foreign ministry, Mao Ning, was questioned about the public announcement made the day before by representatives of the Brazilian government, in Beijing, of an agreement for bilateral trade in both currencies, bypassing the dollar.

She replied, in the CCTV report, “that China and Brazil signed at the beginning of the year a memorandum on the establishment of compensation agreements”, which was informed at the time by the Chinese central bank and reported by Reuters.

But the Chinese media themselves embraced the new ad, through portals such as 163.com and Guancha, including images of Brazilian currency notes. The first, from the NetEase group, was enthusiastic, “Brazil gives China a great gift and, at the same time, teaches the USA a lesson”, explaining:

“The dollar’s status as a world currency has given the US the opportunity to reap the world’s wealth. Many are already unhappy with this situation, such as the European Union and China, and even India is seeking local currency deals to circumvent the dollar’s oppression. .”

The Beijing Ribao heard a Latin America specialist from the Chinese Ministry of Commerce, Zhou Mi, who evaluated the agreement as confirmation that “the international influence of the yuan is growing”.

“Much of the trade between China and Brazil is in bulk commodities, which have formed a historic pattern of dollar trading. dependency will reduce financial risks, especially currency risks. This is very important for Brazil.”

Almost at the same time, the first import of gas in Yuan gained the attention of Western agencies and, above all, the Chinese press, in a deal closed by the Chinese oil company CNOOC with France’s Total.

It also spread, in China and internationally, via Bloomberg, an article published by economist Jim O’Neill in Global Policy, advocating that the Brics “challenge the dominance of the dollar”, using the New Development Bank (NDB). From the creator of the acronym Bric:

“The dollar plays a very dominant role in global finance. Whenever the Fed embarks on periods of monetary tightening, or the opposite, easing, the fallout on the value of the dollar and the knock-on effects have been dramatic.”

He supported the expansion of the NDB, to generate a fairer multi-currency system, arguing that foreign dollar debts “destabilize monetary policy itself, with movements [dos EUA] playing a greater role than national decisions”.

The same Mao Ning, the spokeswoman for the Chinese foreign ministry, also defended the expansion when asked about former president Dilma Roussef taking office in the NDB. From her, via Huanqiu and others:

“Dilma Rousseff is a well-known politician and economist who has long been actively committed to the cause of global development, enjoys an excellent reputation and important influence in the international community. The appointment of Ms. Rousseff by the Brazilian government as president of the NDB fully reflects the great importance it attaches to the bank and the BRICS cooperation mechanism, and China appreciates that.”

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