A bank in Brazil has made history by becoming the first in Latin America to adopt China's Cross-Border Interbank Payment System (CIPS) for trade between the two countries.
The move came as Brazil seeks to strengthen its ties with other BRICS nations as the rotating chair of the bloc this year.
The CIPS network has now reached over 1,300 financial institutions across 110 countries.
BOCOM-BBM is Brazil's oldest bank founded in 1858. It is now fully owned by China's Bank of Communications.
At the bank, an economic shift with global implications is underway.
In 2023, the bank joined CIPS, a dollar-less exchange alternative to the global giant SWIFT.
According to the latest BOCOM-BBM data, direct trade using local currencies increased 20-fold between 2022 and 2024.
BBM's Chief Economist Cecilia Machado says that is because using CIPS reduces costs and greatly simplifies direct China-Brazil trade.
"The CNY, the Chinese currency, which was in ninth position in terms of currency settlements here in Brazil has jumped to the fourth position in currency settlements. So, this shows that joining CIPS has been facilitating an ongoing trend of financial integration between the two countries," she said.
U.S. President Donald Trump has repeatedly threatened to slap 100 percent tariffs on BRICS nations if they move to replace the U.S. dollar as a reserve currency.
And while his executive power to impose such tariffs is being challenged on a number of legal fronts, Trump's threats seem to be having the effect of accelerating BRICS efforts to find alternative currency exchange mechanisms.
Ana Garcia, a senior researcher at the BRICS Policy Center, says Brazil is being pragmatic, focusing on easing trade barriers, not necessarily replacing the dollar, since most of the country's currency reserves are in dollars.
"Trade facilitation is on the agenda. Every business wants that and now every country wants that because of Trump's tariffs is more important than ever. So, Brazil has put an emphasis on trade facilitation. And this can be tariffs. It can be transparency. It can be everything that is technical work, practical around trade. And it can be the use of local currencies to finance trade," she said.
China is already Brazil's biggest trading partner, making these financial arrangements particularly significant as July's BRICS Leaders' Summit approaches with promises to explore further mechanisms for greater economic autonomy.
Brazilian bank adopts China-led CIPS transfer system
Brazilian bank adopts China-led CIPS transfer system
Brazilian bank adopts China-led CIPS transfer system
Analysts have warned of more significant economic pain for Lebanon after its conflict with Israel reignited this month amid wider Middle East tensions, with many expecting the new flare up to have a devastating impact on the country's economy.
Joint U.S.-Israeli strikes on Iran starting on Feb 28 have since spiraled into a wider conflict as Iran fired back with retaliatory strikes on numerous targets across the region, with fears growing over mounting casualties, continued disruption, and far-reaching political and security repercussions.
Lebanon became directly involved in the conflict after Hezbollah fired rockets at Israel last week, prompting Israeli airstrikes and the capture of several positions in southern Lebanon.
The death toll from Israeli attacks in Lebanon since March 2 has risen to 486, with more than 1,300 others injured, Lebanon's Ministry of Public Health said on Monday.
Israel is increasing its deployment of troops and tanks near its border with Lebanon as it intensifies its battle against Hezbollah. Meanwhile, Hezbollah has pledged that it will not back down, despite the Lebanese government's declaration that its military activities are illegal.
The ongoing fighting has already displaced over half a million people, and analysts are now concerned that the Israeli airstrikes and the resulting exodus will severely impact the Lebanese economy.
"The conflict has erupted, and no one knows its full impact for now because we don't know how long it will last. If it continues for a long time, our economy can fall to figures below zero because we will lose all activity we have recovered. This means someone holding the Lira currency will hesitate to spend it because no one knows how this conflict will end," said Mohamed Shams Eldin, an author and researcher for Information International, an independent regional research and consultancy firm based in Beirut.
"All companies and traders prefer cash payments for their goods and services on the spot. The cash economy has deepened amid the current crisis, and the country is in a standstill. Foreign investors are avoiding Lebanon. I think they stay away because of the lack of trust. They fear they will lose their money, and if we face a crisis every year or year and a half, investors will prefer to put their money into other countries," said economic analyst Nadim Al Sabeh.
Lebanon has been grappling with numerous challenges in recent years, beginning with a wide-ranging financial crisis which plunged the country into severe debt. This was then exasperated by the COVID-19 pandemic and a catastrophic explosion at Beirut's port in 2020, before a series of conflicts between Hezbollah and Israel starting in 2023 brought more misery.
The current conflict with Israel has disrupted many economic operations, leading to widespread displacement and putting pressure on the government to cover the costs. For a services-oriented economy like Lebanon's, this now threatens an economic collapse.
"Given the current circumstances, Lebanon doesn't have millions of tourists like Egypt or Türkiye. Therefore, remittances are the foundation of our economy. One million Lebanese citizens, or 250,000 families rely on these remittances. It's why the U.S. dollar cash flow in the market here surpasses that of any other country -- people have lost trust in banks," said Eldin.
Renewed fighting with Israel threatens to collapse Lebanese economy: analysts
