China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary
The deal will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the dollar.
:xicko:
Now the Belt and Road Initiative, please
This is an excellent explanation. I think one thing that could be also mentioned is that with the USD, they could purchase oil, but that involves yet another huge effortpost about the petrodollar, with a complication that China has its own oil company and the consequences of that.