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The world’s largest pulp producer: is considering exporting products to China in RMB

http://www.paper.com.cn 2023-05-10 Financial Associated Press

Suzano SA, the world’s largest producer of hardwood pulp, is considering selling to China in yuan, a further sign that the dollar is losing its dominance in commodity markets.chocolate gift boxes

Walter Schalka, chief executive of Suzano SA, said in an interview on Monday that the importance of the renminbi is becoming more and more prominent, and some customers in China are also willing to trade in renminbi.boxed chocolates

For now, while the dollar still dominates global trade settlements, the switch to the yuan is gathering pace in contracts for everything from oil to nickel.chocolate gift box

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Schalka said that he believes that the US dollar will become less important in the future, but he also pointed out that the renminbi still needs further transformation. He believes that the tense geopolitical relationship between China and the United States is the main concern of the company, as this may suppress the demand and price of pulp for a long time.lifes like a box of chocolates

“China will become more important in the global market, I have no doubts about that,” Schalka said. situation.”chocolates box

According to public information, Suzano SA is the world’s largest hardwood pulp producer, headquartered in Brazil, and its share in the global hardwood pulp market in 2020 is about 15%. China is the largest buyer of the commodity and accounts for 43% of the pulp Suzano sells.preroll king size box

Brazilian enterprises accelerate their embrace of RMB.valentines chocolate box

It is not difficult to foresee that once Suzano SA finally makes the decision to export its products to China in RMB, it will also become the latest case of Brazilian enterprises accelerating their embrace of RMB. China and Brazil signed a memorandum of cooperation on the establishment of RMB clearing arrangements in Brazil earlier this year. Brazil will settle directly with China in its own currency, instead of using the US dollar as an intermediate currency.box of chocolate

In March this year, Industrial and Commercial Bank of China (Brazil) Co., Ltd. successfully handled the first cross-border RMB settlement business. In this business, ICBC Brazil supports the two parties in the trade to successfully realize the direct use of RMB for settlement. This business has shown significant advantages in terms of liquidation efficiency, exchange costs, and the security of capital and information flows.life like box of chocolates

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At the end of March, the Central Bank of Brazil announced that the renminbi has surpassed the euro to become the country’s second largest international reserve currency.assorted chocolate box

In April of this year, during his visit to China, Brazilian President Lula said: “Every night I think about a question, why do all countries use the US dollar for settlement? Why can’t the RMB or other currencies become the international settlement currency? Why (gold) Brick countries) cant use their own currency for settlement?chocolate box gift

It is worth mentioning that if Suzano SA can settle its exports to China in RMB, it may also be good for the domestic paper industry. Last week, an investor asked the Secretary of the Board of Directors of Meili Cloud, which owns the paper business: “Brazil, as the world’s largest pulp exporter, has recently realized direct transactions in RMB with my country. Will it have a positive impact on the paper industry?”chocolate box cake

The board secretary of Meiliyun said that the realization of direct RMB transactions between China and Pakistan will help reduce the risks brought by exchange rate fluctuations and improve transaction efficiency. In the long run, it will have a certain positive impact on the development of the paper industry.regular cigarette case


Post time: May-15-2023
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