Brazilian President Dilma Rousseff has criticised the US government’s decision to inject dollars into the economy as a stimulus measure, which led to significant exchange rate shifts.
Brazilian President Dilma Rousseff has criticised the US government’s decision to inject dollars into the economy as a stimulus measure, which led to significant exchange rate shifts.
Brazil’s currency, real, is one of the most affected, suffering depreciation of almost 15 percent against the dollar since the beginning of this year, Xinhua reported.
The US dollar value soared in the past few weeks, and the Brazilian central bank has held several currency swap auctions in a bid to halt the rise.
President Rousseff Wednesday stressed that the depreciation of the real has nothing to do with the state of the Brazilian economy, but with external factors, adding that Brazil can handle the situation due to its high Forex reserves, currently amounting to $372 billion.
The reserves will help mitigate the impact of the dollar rise on Brazilian people and ensure that the Brazilian economy is not as affected as others in the world, said Rousseff.
“Our (dollar) reserves are among the highest in the world,” the president said.
Rousseff also highlighted positive aspects of the Brazilian economy, such as the falling inflation rate and the low unemployment rate.
-IANS
