Brazil, China consider superceding dollar

A

ASusilovic

Brazil and China will work towards using their own currencies in trade transactions rather than the US dollar, according to Brazil’s central bank. The move follows recent Chinese challenges to the dollar’s status as the world’s key currency. Luiz Inácio Lula da Silva, Brazil’s president, who is visiting Beijing this week, and Hu Jintao, China’s president, first discussed the idea of replacing the dollar with the renminbi and the real as trade currencies when they met at the G20 summit in London last month.

http://ftalphaville.ft.com/blog/2009/05/19/55999/brazil-china-consider-superceding-dollar/

I can understand that the need for toilet paper is receding...
 
Wonder if that will soften the Japanese central bank's stated intention to fight the will and pockets of the World?Probably will imo.
 
Quote from misterno:

Yuan is slowly becoming the reserve currency
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Haha, right. Based on what (other than the typical annoying "decline of America"-talk)?

To OP,

Not going to happen. They've talked about this before without any acting upon it.
 
The true reason for the Iraq war has been rumoured to be over their rejection of the American dollar. What will the US do now to China and Brazil for rejecting the American dollar?
 
Brazil, China Plan to Trade Without Dollars Is ‘Pure Idle Talk’

http://www.bloomberg.com/apps/news?pid=20601087&sid=a.2qBYMO_jtA&refer=home

Brazilian exporters don’t necessarily import from China and would incur additional costs to convert yuan revenues into dollars, said Franco, who helped craft the real currency plan that tamed hyperinflation in 1994.

The trade proposal also would have “lots of restrictions from market practices and regulations,” Nobrega said. “It is very hard to settle international transactions when a currency is not commonly used.”

Chinese and Brazilian leaders may be discussing the proposal because “in the absence of good ideas, you come up with ideas that are not important,” Franco said.

Goldfajn added: “There are more relevant things to be negotiated.”
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