China and Brazil have struck a deal to pay for trade transactions in their own currencies, Fox News Channel reported. 

The deal will allow the two countries to conduct their trade and financial transactions directly using their currencies instead of the US dollar.

In a statement, Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the move is expected to reduce costs, promote greater bilateral trade and facilitate investment. 

A preliminary agreement was announced in January 2023 after a high-level China-Brazil business forum in Beijing. China is Brazil’s largest trading partner, with bilateral trade reaching $150.5 billion in 2022.

(Writing by P Deol; Editing by Anoop Menon)