The two superpowers of the BRIC countries are reportedly looking at using their own currencies in trading with each other. As their currencies (and economies) have been growing strong, the two nations might soon decide to stop using the dollar as their currency for trading, one which confirms the shaky status of the dollar as the world’s leading currency.
The Financial Times is reporting that as one of the points for discussion when Brazilian President Luis Inacio Lula da Silva visited Beijing.
An official at Brazil’s central bank stressed that talks were at an early stage. He also said that what was under discussion was not a currency swap of the kind China recently agreed with Argentina and which the US had agreed with several countries, including Brazil.
Henrique Meirelles and Zhou Xiaochuan, governors of the two countries’ central banks, were expected to meet soon to discuss the matter, the official said.
The increased used of the renminbi could only increase the already strong political power of China.