Me and my BFF have both decided we r ace (assexual), does that mean we are in a relationship now?

Yeah sure, I mean relationships are more than sexual stuff, it's about emotions too.
But uh, a relationship without any sexual intimacy is like drinking a coffee without any cream or sugar ( and not for health reasons like avoiding calories but actually preferring it) it's just not for everyone.

ass exual! has a ring to it