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

Ukraine Purges Interior Ministry Leadership With Pro-Russian Ties

Interior Minister Avakov says 91 people 'in positions of leadership' have been fired, including 8 generals found to have links to past pro-Moscow governments More

US Airlines Point to Additional Problems of any Ebola Travel Ban

Airline officials note that even under travel ban, they may not be able to determine where passenger set out from, as there are no direct flights from Liberia, Guinea or Sierra Leone More

Nigerian President to Seek Another Term

Goodluck Jonathan has faced intense criticism for failing to stop Boko Haram militants More

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.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid

More Americas News

US Coast Guard Rescues 33 Cubans at Sea

Because the overloaded boat did not make landfall, those rescued will be returned to Cuba
More

Search Underway at New Site in Mexico Missing Students Case

This week marked one month since the students went missing after clashing with police in mysterious circumstances
More

Public Transport in Latin America, Asia Most Dangerous for Women

Thousands of women and gender experts were questioned to create the listing
More

Kerry Lays Wreath for Slain Canadian Soldier

World has been witness to Canada's strength in face of tragedy, he says
More

Crowds Gather for Funeral of Canadian Soldier Killed in Ottawa

Corporal Nathan Cirillo, 24, was shot dead in last week near Canada's parliament building in attack allegedly carried out by convert to Islam
More

Mexico Makes New Arrests in Student Disappearances

Attorney General says four more gang members from the Guerreros Unidos cartel who 'organized the disappearance' of the teacher trainees are in custody
More