People's Bank of China and Central Bank of Brazil deepen local currency and cross border payments cooperation

The People's Bank of China reported that the fourth meeting of the China-Brazil Financial Strategic Cooperation Working Group, jointly chaired with the Central Bank of Brazil, reviewed progress in bilateral financial cooperation and set out further work on local currency use, bilateral investment and financing, and cross border payments. The meeting highlighted practical results achieved over the past year and focused on measures to expand financial services that support trade and the real economy between the two countries. Key items discussed included support for companies in both countries to open local currency accounts, broader use of the bilateral local currency swap arrangement, and the possible introduction of direct renminbi-real trading. The two sides also welcomed the Brazilian government's issuance of sovereign panda bonds in China, encouraged more Brazilian companies to issue bonds in the Chinese market, supported a China-Brazil bond connect pilot, and discussed closer cooperation between bilateral local currency payment systems to provide more efficient and secure payment and settlement services. The working group will continue to provide strategic direction and policy coordination, with the next phase focused on implementing the agreed cooperation outcomes and further deepening China-Brazil financial cooperation.