China is the main buyer of iron ore, soy beans, meat, sugar
and pulp exports from Brazil.
In its annual report on reserves, the Brazilian central bank
said there were no significant variations in the composition of
the portfolio compared to the previous year, when it had sought
to diversify its strategic allocations, including increased
exposure to yuan and gold.
Brazil's total foreign reserves fell to $324.70 billion in
2022 due to a 7.45% drop in portfolio returns, caused by rising
interest rates in the United States and the appreciation of the
U.S. dollar against other currencies.
(Reporting by Marcela Ayres;
Editing by Sandra Maler)
BRASILIA, March 31 (Reuters) - The Chinese yuan has
passed the euro to become the second most important currency in
Brazilian foreign reserves, according to a central bank report
on Friday, reflecting the deepening economic ties with Brazil's
biggest trading partner.
Until 2018, the yuan was absent from Brazil's foreign
reserves and now accounts for 5.37% of Brazilian central bank
holdings at the end of 2022, surpassing the euro's 4.74% share.
The U.S. dollar continues to dominate, comprising 80.42% of
Brazil's total foreign reserves in 2022.
Earlier this year, China and Brazil moved to reduce the
dominance of the dollar by signing an agreement on setting up
yuan clearing house arrangements that would facilitate bilateral
trade and investment.
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