Brazil is one major developing nation which greatly increased its central bank’s reserves in Chinese yuan, during 2021—one indication of the damage to the dollar’s status by America’s unhinged use of economic sanctions, but also simply an indication that Brazil is preparing for more trade with, and investment from, China. The development was reported March 31 by Reuters.
The Central Bank of Brazil had no reserves in yuan at all prior to 2019, and still only 1% in 2020, but in 2021 the percentage jumped to 5%, about $18 billion worth in Brazil’s central bank holdings to $362 billion in foreign exchange reserves, about equal to the level of the euro. Its dollar reserves fell from 86% of the total to 80% during that year; what the bank may be doing now, with the monster sanctions imposed on Brazil’s fellow BRICS member Russia, is not yet published.
