Suzano SA, one of Brazil’s largest pulp producers, has begun exploring international deals that price in yuan, positioning the Chinese currency as a growing influence in global trade. In a Bloomberg interview, Walter Schalka, the chief executive officer of the company, discussed how shifting currency preferences among buyers could reshape contract terms for Suzano’s products.
Schalka noted that the yuan’s role is expanding and that some of Suzano’s smaller customers in China are already requesting price adjustments pegged to the Chinese currency. This shift reflects China’s status as a major consumer of Suzano’s output, with the country accounting for a substantial share of the company’s shipments. In his view, such demand signals a broader trend in the Asia-Pacific market where traders are increasingly comfortable settling transactions in yuan rather than dollars.
Looking ahead, Schalka suggested that dollar settlements might gradually lose some importance as the yuan gains traction on the international stage. He stressed that this transition is gradual and not a sudden overhaul of global trade norms, but the tilt toward yuan-based settlements could become more noticeable over time as China continues to export and accumulate foreign exchange reserves.
In related industry commentary, a Business Times report highlighted China’s ongoing efforts to strengthen the yuan and its potential to challenge traditional reserve currencies. The publication pointed to recent examples where major Chinese buyers are engaging in yuan-denominated deals, signaling a broader ambition to diversify away from reliance on the dollar for large-scale commodity purchases. The report cited that a prominent wholesale buyer within the Chinese market participated in a yuan-based transaction, a notable development for the global energy and materials sectors.
Similarly, industry observers have observed how China’s big-state energy company, China National Offshore Oil Corporation, has experimented with yuan-denominated trade in liquefied natural gas purchases. The move involved engaging with one of the world’s leading energy producers and adjusting pricing to reflect yuan settlement, a signal that currency diversification is spreading across key commodity markets. These developments illustrate a broader pattern in which buyers and sellers are reevaluating currency exposure and exploring yuan-based terms for cross-border deals. In the broader context, analysts emphasize that the yuan’s path to reserve status remains a multi-year process influenced by China’s financial reforms, international trade policies, and the depth of its financial markets.