BRICS members China and Brazil have officially announced that they will resolve payments in local currency to reduce their dependence on the US dollar. This comes after China imposes an additional 34% tariff on all US goods that have entered the country as a measure against Trump. Several countries have expressed discomfort over US tariffs and have found dollar alternatives to protect the economy.
Additionally, China has also announced restrictions on local businesses from investment in the US. This move will stop the inflow of funds into the US and slow the market. The US could lose billions of institutional investments from China as a measure against Trump’s tariffs. If BRICS uses local currency for trade, read here to find out how many sectors are affected by the number of US sectors.
Just: China to impose an additional 34% tariff on US goods.
– watcher.guru (@watcherguru) April 4, 2025
BRICS: Brazil and China continue trading in local currencies
Treasury Secretary Tatiana Logit confirmed that BRICS member Brazil supports local currency payment settlements with Brazil. Rosito emphasized that mutual payments between Brazil and China will increase, while simultaneously reducing dependence on the US dollar.
“For example (BRICS member) is already underway between Brazil and China.” Rosito told Tass. She added that there is no objection that Brazil has crossed the border with China in its local currency. “There are no obstacles to the Brazilian side.” Officials said.
The secretary explained that settlement of local currency transactions will reduce foreign exchange costs and boost the economy. “Therefore, the goal of BRICS is to expand the use of local currency in any way that allows for cost reductions and becomes of interest to members of the association. ” She said.
She added that new development banks supporting BRICS with local currency funds can change the alliance. “Opening this bank reflects the aspirations of BRICS members and its active participation in economic and financial order change.” Rosito summed it up.
