Part of a longer article:

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By: Adrian Ash, BullionVault

Brazilian president Luiz Inacio "Lula" da Silva meantime travels to China this week, and "the outcome could be quite explosive," says Steven Barrow, also at Standard Bank.

Having blamed the global financial crisis on "blue-eyed bankers" at this April's G20 summit, "Lula has already said that he will suggest to China’s leaders that bilateral trade is conducted in local currencies, not the US Dollar," Barrow notes.

"There’s no reason why China can’t make such a commitment this week."

Bilateral trade between China and Brazil accounts for only a tiny portion of global trade, but "these sorts of actions from Brazil and China could be the start of creeping de-dollarisation of trade and that’s something that could weigh on the dollar in the very long haul," says Barrow – "meaning years, if not decades."

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