The move is part of China's broader efforts to promote the use of the Yuan, its currency, for more international trade.

Brazil is one of China's largest trading partners, and both countries hope the new deal will strengthen their economic ties.

This is not the first time China has pursued such trade deals, as it seeks to reduce its reliance on the US dollar and increase its influence in the global economy.

Other countries, such as Russia and Iran, have also made similar agreements with China recently.

While it is unlikely that the US dollar will lose its dominant position in the short-term, these deals signal a shift in the balance of power in the global economy.