[Global] China-Brazil trade (pulp) the first local currency trading process was successfully realized! | Qingya Paper

October 08, 2023

On September 28, Bank of China Brazil successfully handled the discount business of RMB letter of credit for Brazilian enterprises, and immediately converted it into Brazilian real. For the first time in the history of China-Brazil trade, the whole process of RMB pricing, RMB settlement, RMB financing and the direct conversion of RMB to real was realized.


The first test of the water was conducted by Brazil's El Dorado Pulp Company (Eldorado Brasil). Founded in 2010, the company is one of the most competitive companies in Brazil's pulp industry, with about 40% of its products sold to China. In August this year, the company accepted an import enterprise in Xiamen, China to use RMB as the contract valuation currency, and designated Bank of China Brazil as the receiving bank to test the water for RMB settlement.

 On August 26,43 boxes of pulp from El orado pulp Company shipped from Santos port for Qingdao port in China. In September, Boc Brazil received the RMB deferred payment letter of credit issued by the importer, and then notified Brazil El Dorado Pulp Company, completed the review of the freight documents and the letter of credit, and discounted the RMB letter of credit for the company on September 28 to help the exporter to receive the RMB payment in advance. According to the regulations of Brazilian foreign exchange administration, Bank of China Brazil immediately directly convert the received RMB into real into Brazil and into the customer's local account, realizing the closed-loop operation of the whole process from RMB trading of goods to RMB settlement, financing and direct exchange of local currency in capital transaction.

 In April this year, during Brazilian President Inacio Lula da Silva's visit to China, the two countries signed a memorandum of understanding on cooperation to promote local currency trade.

 Industry observers believe that the local currency trading as china-Brazil trade real currency pricing, settlement of the first exploration, provides Brazilian exporters RMB settlement one-stop solution, is a milestone in the history of china-Brazil trade, also will be for more enterprises adopt the same way to achieve local currency settlement provides examples and path.

It is known that Boc Brazil is currently helping Brazilian companies to open RMB settlement accounts offshore through its global layout advantages, accepting Chinese importers to pay in RMB, and using RMB to import machinery and equipment from China. In the future, Bank of China Brazil will continue to strengthen market cultivation, increase the recognition and acceptance of Brazilian enterprises for RMB, innovate and optimize business processes, enrich related products of RMB business, and match more China-Brazil trading partners to try local currency settlement.

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