Brazil's President: Put a collar on the dollar
11 Apr, 2012 12:11
Brazil has warned the monetary policies of developed countries are threatening the growth of emerging economies.
President Dilma Rousseff of Brazil made the comments while meeting US President Barack Obama during her first visit to the White House. “Such expansionist monetary policies ultimately lead to depreciation in the value of the currencies of developed countries, thus impairing growth in emerging countries,” Rousseff said.The world’s sixth largest economy is suffering from an appreciation of its currency, the Real. Brazil blames it on a “currency war” that allowed cheap dollars generated by easy credit to flood into the country. The BRICS countries, Brazil, Russia, India, China and South Africa, have been blaming the enormous cash lake created by the west to deal with its debt crisis for "spilling over into emerging economies, fostering excessive volatility in capital flows and commodity prices". “The BRICS countries currently account for a very substantial share of economic growth worldwide,” said Rousseff.Though Rousseff welcomed the improving economic picture in the US and said America is playing a great role “not only in containing the effects of the crisis but also in ensuring proper resumption of prosperity.”