Brasilia - 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 labour leaders.
She said she was committed to defending Brazilian industry and making sure that the methods used by the rich countries "do not cannibalise emerging markets".
Brazil has been trying to stop the appreciation of the local currency, the real, which has already risen more than 8% 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.