Why Did Brazil DUMP the US Dollar? #brltousd #brazilchinatrade #brazilchinadollar

Brazil Ditches the US Dollar.

In recent years, there has been a growing trend of countries seeking to diversify their trade partnerships and reduce their dependence on the US dollar as the dominant currency for international trade. One notable example of this trend is the decision by Brazil and China to ditch the US dollar in their bilateral trade. This move has significant implications for the global economy and could have major impacts on the cost of travel, spending power of the dollar in Brazil, and the position of the US in global trade.

The decision by Brazil and China to move away from the US dollar in their trade relationship is part of a larger trend in the global economy. Many countries, particularly those in emerging markets, have grown increasingly frustrated with the dominance of the US dollar in international trade. They argue that this dominance gives the US an unfair advantage and leaves them vulnerable to fluctuations in the US economy.

For Brazil, this decision has important implications for its economy and its relationship with China. China is already Brazil's largest trading partner, with bilateral trade reaching $100 billion in 2020. By ditching the US dollar in their trade, Brazil and China are seeking to reduce their dependence on the US and strengthen their economic ties with each other. This move is also likely to cement China's position as Brazil's top trading partner, with the US falling to second place.

One potential impact of this shift is on the cost of travel. Brazil has long been a popular tourist destination, particularly for US travelers. However, with the US dollar losing its dominance in Brazil's economy, it is likely that the cost of travel to Brazil will increase for Americans. This is because the value of the dollar in Brazil will likely decrease, making it more expensive for Americans to travel there.

Another potential impact of this shift is on the spending power of the US dollar in Brazil. Historically, the US dollar has been a strong currency in Brazil, with many goods and services priced in dollars. However, with the US dollar losing its dominance in the Brazilian economy, it is possible that the value of the dollar will decrease, making it less valuable for Brazilians to hold dollars. This could have major implications for US businesses operating in Brazil, as well as for American expats living in the country.

Overall, the decision by Brazil and China to ditch the US dollar in their bilateral trade is a significant development in the global economy. It reflects a growing trend of countries seeking to reduce their dependence on the US dollar and diversify their trade relationships. While the full implications of this shift are not yet clear, it is likely to have major impacts on the cost of travel, the spending power of the US dollar, and the position of the US in global trade.
#brltousd #brazileconomy #brazilchinatradedeal

Please Like, Subscribe, Comment and Share the videos that you like.

If you wish to support the channel,
Send a CASHAPP to: $bjota