Suzano points to the dollar ‘losing relevance in commodities’ – 09/05/2023 – Nelson de Sá

At the top of Bloomberg, “World’s largest pulp producer considers business with China in yuan” (reproduced below). In the second statement, “Brazilian Suzano sees the dollar losing relevance in commodities”.

It is an interview conducted at Bloomberg headquarters in New York with Chief Executive Officer (CEO) Walter Schalka and, in part, with Chief Financial Officer (CFO) Marcelo Bacci, also presented via Yahoo.

It was widely reflected in the Chinese media, by newspapers such as Huanqiu (Global Times) and portals such as Sina and Guancha, with headlines stressing that it “illustrates change”. It also reached the social media platform Weibo.

Schalka says “the Chinese currency is growing in importance and smaller customers are demanding deals linked to the renminbi”, another name for the yuan. For him, “the dollar will become less relevant”, but a “great transition” has not yet happened:

“China will become more relevant in the global market, I have no doubt,” he added, citing a concern: “It would be much better to have a long-term collaboration between West and East, but what we see is growing tension right now “.

In Bloomberg’s own description, “While the dollar remains dominant, the use of the renminbi in contracts for everything from oil to nickel is picking up speed.”

Asked about Lula’s environmental policy, Schalka commented: “We are in contact with the government. They have the right speech. It’s just the action plan that is not as fast as expected. We need to have zero illegal deforestation. This is crucial for the world”.

PRESENT LINK: Did you like this text? Subscriber can release five free hits of any link per day. Just click the blue F below.