Brazil’s Finance Minister Fernando Haddad announced that Brazil has offered to use Chinese yuan guarantees for its exports to Argentina, as a way to reduce trade risks and help its neighbor cope with a severe dollar shortage.
Haddad made the proposal during the 15th BRICS summit in Johannesburg, where he met with his Argentine counterpart Martín Guzmán. He said that the guarantees would be supervised by state lender Banco do Brasil, which would convert the yuan into Brazilian reals to pay the exporters.
“It will be a good thing for Brazilian exporters, and it will be great news if Argentina agrees,” Haddad said. “They can have a flow of sales with 100% guarantee.”