The People's Bank of China (PBoC) announced that Governor Pan Gongsheng and Central Bank of Brazil Governor Gabriel Galipolo signed a financial strategic cooperation memorandum of understanding and renewed the bilateral renminbi/real local-currency swap agreement. The strategic cooperation MoU covers measures to improve the financial market investment environment, strengthen technical exchanges on market development, support financial investors to expand investment, and promote interoperability of financial market infrastructures. It also includes cooperation to provide local-currency liquidity through bilateral local-currency arrangements and to enhance cross-border payments connectivity, including linkages between fast payment systems and cross-border QR-code payments. The renewed swap line is set at CNY 1,900 billion/BRL 157 billion for five years and can be extended by mutual consent, with the stated aims of expanding local-currency use, facilitating bilateral trade and investment, and supporting financial market stability. Separately, relevant departments of the two central banks signed an MoU on anti-money laundering and counter-terrorist financing financial intelligence cooperation, providing for reciprocal cooperation on information collection, analysis and mutual assistance related to suspected money laundering, terrorist financing and other related crimes. The PBoC also indicated it will sign a separate financial strategic cooperation MoU with Brazil’s Ministry of Finance covering cooperation on financial markets, development finance, and coordination on international financial and monetary policy, including work under the China–Brazil sustainable development and capacity cooperation fund mechanism and exploration of additional investment and financing mechanisms.

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