China and Brazil set up infrastructure for renminbi clearing

China and Brazil have pushed ahead with using their local currencies to settle trade, with a Rio-based Chinese bank joining a renminbi-denominated payment system backed by China’s central bank.

In a statement on March 29, Brazilian authorities said Banco Bocom BBM, a subsidiary of China’s Bank of Communications, will connect to China’s Cross-border Interbank Payment System (CIPS).

“The expectation is to reduce the costs of commercial transactions with the direct exchange between the Brazilian