Bank of China (Brazil) Limited (hereinafter referred to as "Bank of China Brazil") announced that for the first time, China Pakistan Trade has achieved a full process closed-loop operation of local currency transactions.

On September 28th, Bank of China in Brazil successfully processed RMB letter of credit discounting business for Brazilian enterprises and immediately exchanged it for Brazilian real to be credited. This marks the first time in the history of trade between China and Brazil that a full process closed-loop operation has been achieved, including RMB valuation, RMB settlement, RMB financing, and RMB direct exchange for the real.

In April this year, during a trade delegation led by Brazilian President Lula to visit China, the two countries signed a memorandum of understanding on cooperation aimed at promoting local currency trade and settlement between the two countries.

Industry professionals believe that this local currency transaction is the first attempt to truly achieve local currency valuation and settlement in China Pakistan trade, providing Brazilian exporters with a one-stop solution for RMB settlement, and becoming a milestone event in the history of China Pakistan trade. Local currency settlement will undoubtedly become a method that more enterprises will emulate and adopt, providing a demonstration and feasible implementation path for China Pakistan trade to achieve local currency settlement.