Roubini Topic Archive: Brazil
Brazil’s volatile currency is back in the spotlight, thanks to the Fed’s announcement that it will soon begin to taper its program of asset purchases known as Q3. The following chart shows that the exchange rate for Brazil’s currency, the real, is approaching the low reached after the August taper scare and is almost back […]
Brazil’s volatile currency, the real, is back in the news. Two years ago, the real hit all-time highs against the dollar. The rise prompted Brazil’s finance minister, Guido Mantega, to accuse the central banks of advanced countries, the Fed in particular, of conducting a “currency war” at his country’s expense. Now the real is heading […]
Latin America is up in arms over QE2. Brazil’s finance minister, Guido Mantega, sees the Fed’s program of quantitative easing as a form of currency manipulation on par with China’s efforts to maintain an undervalued yuan. We hear dark talk of currency wars and threats to raise the issue with the G20, the WTO, and anyone else who will listen. Why all the anger directed against what most people in the United States view as a purely domestic policy that hopes to reboot a sluggish recovery? Why wouldn’t that be welcomed by US trading partners in Latin America and everywhere?