On the 2nd, the reporter learned from Bank of China (Brazil) Co., Ltd. (Bank of China Brazil) that Bank of Brazil has recently processed RMB letter of credit discount business for Brazilian enterprises, and immediately converted it into Brazilian real for recording. For the first time in the history of China Brazil trade, it has achieved the full process closed-loop operation of RMB valuation, RMB settlement, RMB financing, and RMB direct exchange of real. It is reported that this business involves El Dorado Pulp Company in Brazil. The company is one of the most competitive enterprises in the Brazilian pulp industry, with approximately 40% of its products sold to China. In August of this year, the company accepted the request of Chinese importers to use RMB as the contract valuation currency and designated Bank of China Brazil as the receiving bank to test the settlement in RMB. After receiving the RMB deferred payment letter of credit issued by the importer, Bank of China Brazil handles the RMB letter of credit discount business to help Brazilian enterprises receive the RMB payment in advance. The person in charge of Bank of China Brazil stated that according to Brazilian foreign exchange management regulations, Bank of China Brazil immediately converts the received RMB into real and transfers it to the customer's local account, achieving a closed-loop operation from RMB valuation for goods transactions to RMB settlement, financing, and local currency direct exchange for fund transactions. In March of this year, Brazil and China reached an agreement to use local currency for settlement in bilateral trade and financing activities. During Brazilian President Lula's visit to China in April, the two countries issued a joint statement on deepening the comprehensive strategic partnership. The two sides agreed to deepen economic and financial dialogue and strengthen local currency trade. (New News Agency)