Brazil says rich nations causing ‘monetary tsunami’
‘We will not be impassive in the face of currency
exchange war’:
BRAZIL: President Dilma Rousseff on Thursday accused the world's rich
countries of unleashing a “tsunami” of cheap money that hurts developing
countries like Brazil.
Rousseff complained that rich nations are responding to the global
financial crisis with easy credit and low interest rates -- and that
cheap money makes its way to Brazil, which has high interest rates and a
strong currency.
Brazil considers the situation an “exchange war” because as a result,
Brazilian products are more expensive and US and European imports
cheaper.
“We are concerned about this monetary tsunami” caused by the
“developed countries,” Rousseff said in a speech to business and labor
leaders.
She said she was committed to defending Brazilian industry and making
sure that the methods used by the rich countries “do not cannibalize
emerging markets.”
Brazil has been trying to stop the appreciation of the local
currency, the real, which has already risen more than eight percent
against the US dollar since the start of the year.
Brazil “will not be impassive in face of the currency exchange war,
we must defend ourselves,” Finance Minister Guido Mantega earlier told
reporters. AFP |