High dollar to boost Brazil industry

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High dollar to boost Brazil industry
RIO DE JANEIRO, BRAZIL (BDCi) – Brazil’s finance minister, Guido Mantega, reiterated his opinion Monday, that the appreciating U.S. dollar will increase the competitiveness of Brazilian industry.

Speaking at the finance ministry, Mantega said the current exchange rate, just under US$1 to R$2, allowed local products to remain cheaper than imported goods subsequently boosting national production.

“The high dollar benefits the economy because it gives greater competitiveness to Brazilian products,” he said.

Mantega has been a fierce critic of U.S. and European monetary policy which has seen governments inject huge amounts of cash into their economies, resulting in both an undervalued currency and a flood of foreign investments to emerging economies.

The finance minister suggested that Brazil was engaged in a “currency war” with developed nations in order to achieve a competitive exchange rate.

By: Natania Levine
Courtesy: riotimesonline.com
Photo: riotimesonline.com
15 May 2012
9:37 a.m. P.D.T

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