Challenging Dollar Dominance? How Brazil Responds to RMB Internationalization

This article explores the role of China’s currency, the renminbi (RMB), in Brazil, analyzing how the country positions itself in the shift toward alternative currencies to the U.S. dollar amidst changing global monetary power. It addresses three key questions: How widely is the RMB used in Brazil’s economy? What institutional measures support RMB adoption in Brazil? And what are the implications of this engagement for Brazil’s role in the international monetary and financial system? Findings indicate a modest but growing RMB integration in Brazil. Rather than embarking on a de-dollarization process, Brazil appears to be employing an incremental approach – one that leverages selective institutional measures to diversify its financial risks while preserving its strategic ties with the dominant global currency.