The memorandum of understanding (MOU) China and Brazil signed earlier this year to establish a yuan clearing arrangement will be conducive for promoting bilateral trade and facilitating investment, the Chinese foreign ministry said on Thursday.
The yuan clearing deal was among some 20 cooperation agreements signed between China and Brazil during the Brazil-China Economic Seminar in Beijing, according to a statement released on Wednesday on the website of the Brazilian Trade and Investment Promotion Agency (Apex-Brasil).
Banco BOCOM BBM announced its use of the China Interbank Payment System (CIPS), which is the Chinese alternative to SWIFT. The aim is to reduce the costs of commercial transactions thanks to direct exchanges between the Brazilian real and China's yuan. The bank will be the first direct participant in this system in South America, it said.
The central banks of China and Brazil in February signed an MOU on establishing yuan clearing arrangements in Brazil, according to a statement released on the website of the People's Bank of China on February 7.
