China's RMB becomes Brazil's second-largest international reserve currency

BRASILIA -- The Central Bank of Brazil announced on Friday that the Chinese currency renminbi, or the yuan, has surpassed the euro to become the country's second-largest international reserve currency.

According to the "International Reserve Management Report" released by the central bank on its official website, the increase of the RMB's share in Brazil's international exchange reserves reflects the deepening economic ties between Brazil and its largest trading partner -- China.

The report said that by the end of 2022, the proportion of the RMB in Brazil's international exchange reserves had reached 5.37 percent, exceeding the proportion of the euro at 4.74 percent. The RMB became one of Brazil's international exchange reserve currencies in 2019.

At present, the U.S. dollar still dominates Brazil's foreign exchange reserves, accounting for 80.42 percent.

The central bank also noted in the report that Brazil's total international reserves fell from $362.2 billion in 2021 to $324.7 billion in 2022, due to loss in portfolio returns amid the US Federal Reserve's rate hikes and dollar appreciation.