Reply #7: Brazil will use the Yuan the same way Walmart does

[2bornot2b]

This is an assumption that trade only goes one way, which is a little different from reality.

Walmart has over 100 stores in China, and they collect Yuan every day. Proctor & Gamble sells hundreds of products in China and they get paid in Yuan. What do you think they do with the millions they collect? They use it to fund their operations there, to pay for products that they sell to American consumers, and when they need to convert the Yuan back to US dollars, there are many ways to do that.

Likewise, Brazil can buy stuffs from China and pay for them in Real. China can then turn around and use the Real to buy raw materials from Brazil. Or China can pay Yuan for the raw materials, and Brazil use it for manufactured goods from China. As long as it is cheaper and/or less risky to do the conversion directly than to go through US dollars, people will do it.