China and Brazil have reached an agreement to use a direct conversion between Chinese Yuan and Brazilian Reais without first converting to the U.S. dollar going forward in all trade and financial transactions. The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the agreement will “reduce costs” and “promote even greater bilateral trade and facilitate investment.” China, who has been Brazil’s largest trading partner since 2009 after replacing the U.S., announced the deal during a business forum between the two countries in Beijing. Brazilian President Luiz da Silva has been strengthening ties with China since his recent election.
