Brazil: New section in Global Currency War

Currency war has another section according to the article of business week on 3 Feb 2011.

The Currency war is not a virtual war; it’s a real financial war where the powerful world countries try to get what they failed to get in their weak, turmoil economies.

The birth of the expression came through the Brazilian Finance Minister Guido Mantega,  when he raised the alarm in September 2010. He said “We’re in the midst of an international currency war, a general weakening of currency. This threatens us because it takes away our competitiveness.” When the dollar is less, the American’s products is cheaper and therefore the competitive of purchasing an American car is better than producing a one inside the country.

Simply, the Americans and Europeans, Japan and South Korean are playing around to keep their currencies’ (Dollar, Euro, Yen and Won) exchange rates low to boost export competitiveness and enhance the purchasing power to their products over the Chinese and other BRICS countries.

Yesterday, Again, the Brazilians Trade Minister Fernando Pimentel, pointed out that Brazil’s government faces limits on how much it can do to prevent its currency from strengthening. He added in an interview in Port-au-Prince: “There’s a limit to our capacity to prevent this appreciation of the real.”

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About Rami Alhames

I'm a Syrian Brazilian, Freelance Translator and Social media contributor @GlobalVoices @GVinArabic, Meedan, in Portuguese, Arabic and English.
This entry was posted in Econmoy & Business and tagged , , , , . Bookmark the permalink.

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