News / Americas

    Brazil Says US, China Both Cause Currency Problems

    Some members of the Group of 20 leading and emerging economies say China is causing problems with trade and currencies by manipulating the value of its money.  But Brazil's finance minister says the U.S. efforts to stimulate the American economy are causing just as many problems for his nation.  The debate comes as finance ministers and central bank governors head for talks on tough economic issues later this week.

    A long-simmering dispute over the way China sets the value of its currency will be a key issue on the agenda in Paris on the 18th and 19th of February.

    The United States and some other nations complain that Beijing obtains an unfair price advantage for its exports by pushing down the value of its currency.  Some economists say China's policy has hurt the economies of both Brazil and the United States.

    But in a telephone conference for journalists on Tuesday, Brazilian Finance Minister Guido Mantega said there is no plan for joint action by Washington and Brazil to press China for change. "Brazil is as concerned about the [decline] of the U.S. dollar as it is about the [Chinese currency]," he said.

    Mantega says Washington also hurt Brazil when efforts to stimulate the U.S. economy with low interest rates and a massive program to purchase financial assets cut the value of the dollar.

    He says low interest rates and weak currencies in developed nations mean investors can get better returns in dynamic emerging nations like Brazil.  A flood of foreign investment has sharply raised the value of Brazil's currency, which means Brazilian-made products cost more to foreigners.  The higher price hurts the nation's vital export sector.  

    Commodities like sugar and soy beans are important exports for Brazil, and Mantega says the global price for many commodities shot up 40 percent last year.

    Some G20 nations are discussing proposals to limit commodity price hikes. "Brazil totally opposes use of mechanisms to control the prices of commodities or to regulate the price of commodities," said Mantega.

    Mantega says limiting commodity prices could actually cut the supply of the affected crops, and make price problems worse.  He argues such regulations will keep farmers from responding to high prices by planting more hectares of expensive crops in the hope of making more money.  Smaller plantings are likely to mean smaller crops, and tight supplies tend to boost prices.

    Previous G20 gatherings have been focused on coordinating policies to ease the financial crisis, and seeking improved regulation to make the world less likely to face such problems in the future.

    These and other issues are likely to be discussed in Paris later this week, as top economic officials set the stage for a gathering of presidents, prime ministers and other heads of state next November in Paris.

    You May Like

    Video Democrats Clinton, Kaine Offer 'Very Different Vision' Than Trump

    In a jab at Trump, Clinton says her team wants to 'build bridges, not walls'; Obama Hails Kaine's record; Trump calls Kaine a 'job-killer'

    Turkey Wants Pakistan to Close Down institutions, Businesses Linked to Gulen

    Thousands of Pakistani students are enrolled in Gulen's commercial network of around two dozen institutions operating in Pakistan for over two decades

    AU Passport A Work in Progress

    Who will get the passport and what the benefits are still need to be worked out

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movementi
    X
    July 22, 2016 11:49 AM
    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Poor Residents in Cleveland Not Feeling High Hopes of Republican Convention

    With the Republican Party's National Convention underway in Cleveland, Ohio, delegates and visitors are gathered in the host city's downtown - waiting to hear from the party's presidential candidate, Donald Trump. But a few kilometers from the convention's venue, Cleveland's poorest residents are not convinced Trump or his policies will make a difference in their lives. VOA's Ramon Taylor spoke with some of these residents as well as some of the Republican delegates and filed this report.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video With Yosemite as Backdrop, Obama Praises National Parks

    Last month, President Barack Obama and his family visited some of the most beautiful national parks in the U.S. Using the majestic backdrop of a towering waterfall in California's Yosemite National Park, Obama praised the national park system which celebrates its 100th anniversary this year. He talked about the importance of America’s “national treasures” and the need to protect them from climate change and other threats. VOA’s Julie Taboh reports.
    Video

    Video Counter-Islamic State Coalition Plots Next Steps

    As momentum shifts against Islamic State in Iraq, discussions are taking place about the next steps for driving the terrorist group from its final strongholds. Secretary of State John Kerry is hosting a counter-IS meeting at the State Department, a day after defense ministers from more than 30 countries reviewed and agreed upon a course of action. VOA Pentagon correspondent Carla Babb reports.
    Video

    Video Russia's Participation at Brazil Olympic Games Still In Question

    The International Olympic Committee has delayed a decision on whether to ban all Russian teams from competing in next month's Olympic Games in Brazil over allegations of an elaborate doping scheme. The World Anti-Doping Agency recently released an independent report alleging widespread doping by Russian athletes at the 2014 Winter Olympics in Sochi. So far, only Russian track and field athletes have been barred from the Summer Games in Brazil. VOA's Zlatica Hoke has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.
    Video

    Video Millennials Could Determine Who Wins Race to White House

    With only four months to go until Americans elect a new president, one group of voters is getting a lot more attention these days: those ages 18 to 35, a generation known as millennials. It’s a demographic that some analysts say could have the power to decide the 2016 election. But a lot depends on whether they actually turn out to vote. VOA’s Alexa Lamanna reports.

    Special Report

    Adrift The Invisible African Diaspora

    More Americas News

    Obama: Trump’s Portrait of America ‘Doesn’t Jibe With Reality’

    At news conference with Mexico's president, Obama says US is 'not going to make good decisions' about race relations, crime ' based on fears that don’t have basis in fact'

    Vatican Invited to Mediate in Venezuela Crisis

    Various opposition leaders say President Maduro's public exhortations to support dialogue are a cynical attempt to buy time and cling to power

    Homicides Rise 15.4 Percent in Mexico in 1st Half of 2016

    The figures remained below those for 2011, the peak year for violence during Mexico's drug war

    Video Wall Already Runs Along Parts of US-Mexico Border

    Large metal barrier that separates Nogales, Arizona, from Nogales, Sonora, isn't that popular with those who live near it

    Brazil Arrests Suspected Olympics Attack Planners

    Cell organized through internet-based messaging services such as WhatsApp and Telegraph

    Russia Loses Appeal of Olympics Ban

    Court rules Thursday that Russia's track and field athletes can not compete