All data is delayed
See More

Rich nations causing 'monetary tsunami'

Mar 02 2012 08:13

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.

ecb  |  dilma rousseff  |  brazil


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote