China’s Brazil Deal Could Topple US Dollar in Region, Create Supply Chain Bottlenecks: Analysts

Brazil's President Luiz Inacio Lula da Silva (L) talks to China's Ambassador to Brazil Zhu Qingqiao at the Palacio do Planalto in Brasilia on Feb. 3, 2023. Sergio Lima/AFP via Getty Images

On March 29, Brazil’s government announced it would start using local currency and China’s yuan for financial transactions between the two nations.

While pragmatic on the surface, some say the move indicates China’s push to end the U.S. dollar’s dominance, particularly in the Americas.