LatinNews Daily Report - 22 June 2012

ECONOMY | Brazil & China to ink US$30bn currency swap. Brazil’s finance minister, Guido Mantega, said on 21 June that President Dilma Rousseff and China’s Premier, Wen Jiabao, had agreed a deal on a US$30bn currency swap in order to facilitate trade between the two countries. China is now Brazil’s main trade partner, with bilateral trade worth an estimated US$76bn in 2011. Mantega said that the swap deal, worth R$60bn or 190bn Yuan, is the first part of a new agreement between the Brics group (Brazil, Russia, India, China and South Africa) to work more closely together to counteract the global economic and financial crisis by pooling resources. In Rio yesterday, Rousseff and Wen Jiabao also signed new bilateral agreements to boost trade and investment cooperation, including an aerospace deal that should facilitate Embraer's business in China. Mantega stressed that the agreements aim to boost the sale of Brazilian manufactured goods to China, so that bilateral trade is less dominated by Chinese demand for raw Brazilian commodities like soya and iron ore.

End of preview - This article contains approximately 319 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial