Currency swap deal agreed by Brazil and China

<p>China and Brazil have agreed a currency swap.</p>

China and Brazil have announced they have agreed terms on a new currency swap, as well as a trade deal that will benefit both rising nations.

The country's central banks are to be given the chance to swap local currencies worth up to 190 billion yuan or 60 billion reais (£20 billion).

Guido Mantega, Brazil's economy minister, suggested the extension of the partnership between the two nations will help their growth to be more stable in the coming years.

"If there were shocks to the global financial market, with credit running short, we'd have credit from our biggest international partner, so there would be no interruption of trade," he said.

China is already Brazil's biggest trading partner and smooth bilateral trade is expected as a result of the new deal between the nations.

Brazil's economy is expected to be one of the strongest in the world soon, as the Latin American country is holding both the Fifa World Cup and the Olympic Games in the near future.

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