The two largest economies in Asia and Latin America are dealing a “blow” to the dollar

The central banks of Brazil and China signed a memorandum of understanding providing for the establishment of an offshore clearing house, which means that the two countries agreed to abandon the dollar in their bilateral trade dealings.

G1 writes, citing a statement from the Brazilian regulator (the central bank) that the conversion of the Chinese yuan into Brazilian reals will become “faster and cheaper”, but it is not specified when this tool will be used.

The newspaper indicated that the Chinese Central Bank would locate such a center in Brazil, and according to the newspaper, the Brazilian Central Bank indicated that “a similar Chinese initiative was implemented for the first time in Hong Kong in 2003, and this initiative is currently operating in more than 25 countries.”

Russia has been calling for years to abandon the US currency in international transactions, in light of Washington’s hostile policy and the US public debt reaching astronomical levels.

Earlier, Russian Foreign Minister Sergey Lavrov stated that the ideas of various countries to increase the share of trade in national currencies are due to the actions of the United States.