On May 13, 2025, in the presence of Chinese President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva, Governor of the People's Bank of China (PBOC) Pan Gongsheng and Governor of the Banco Central do Brasil (BCB) Gabriel Galípolo signed the Memorandum of Understanding (MoU) on Financial Strategic Cooperation Between the People's Bank of China and the Banco Central do Brasil and renewed bilateral local currency swap agreement.

The MoU aims to deepen cooperation between the two central banks on all fronts. Key areas include improving financial market investment environment, strengthening technical exchanges on financial market development, supporting financial investors in expanding investment, and promoting financial market infrastructure connectivity. Under the MoU, the two central banks will also promote currency cooperation through liquidity provision to each other's financial markets, and advance cross-border payment connectivity and expedite the interlinking of fast payment systems and QR code payments.

The renewed RMB190 billion/BRL157 billion local currency swap agreement between China and Brazil is valid for five years and can be renewed upon mutual consent. The renewed swap arrangement will support the wider use of local currencies, promote bilateral trade and investment facilitation, and help maintain financial market stability.

Meanwhile, the relevant departments of the two central banks signed the Memorandum of Understanding on Cooperation in the Exchange of Financial Intelligence Related to Money Laundering and Terrorist Financing, aiming to jointly combat cross-border money laundering and terrorist financing. Based on the principle of reciprocity, the two sides will cooperate to collect and analyze information concerning financial transactions suspected of money laundering, terrorist financing, and other criminal activities. The goal is to jointly disrupt cross-border money laundering networks, cut off financing for terrorism, and support anti-corruption efforts and fair development.

The PBOC will also sign a Memorandum of Understanding on Financial Strategic Cooperation with the Brazilian Ministry of Finance, to promote cooperation in the fields of financial markets, development financing, and international financial and monetary policy coordination. Key aspects include promoting cooperation under the China-Brazil Cooperation Fund for the Expansion of Production Capacity for Sustainable Development, exploring other investment and financing channels, advancing the reform of international monetary system, improving global financial governance, and strengthening the development financing agenda.

The signing of the above documents marks a new chapter of China-Brazil financial strategic cooperation that is mutually beneficial and pragmatic. Stronger financial cooperation will provide more efficient and safer financial services to businesses in both countries, create an enabling environment for the alignment of development strategies, and further consolidate and deepen the China-Brazil comprehensive strategic partnership.