Brazil president Dilma Rousseff blasts Western QE as ‘monetary tsunami’
Brazil’s president Dilma Rousseff has attacked Western governments for creating a “monetary tsunami” as they pursue quantitative easing (QE) policies in an effort to revive their economies.
By Richard Blackden
10 Apr 2012
In her first visit to the White House since her election more than a year ago, Ms Rousseff voiced concern over an “expansionist” monetary policy that has caused a “depreciation in the value of currencies of developed countries, thus impairing growth” in other nations.
The Brazilian government has taken aggressive steps to try to tame the strength of its currency and protect exports, with the country’s central bank intervening in the currency markets in recent weeks.
South America’s biggest economy recorded a trade deficit of $8.2bn (£5.2bn) with the US last year as robust growth fuelled demand for imports.
“Brazil will continue to take whatever actions required to offset the detrimental effects of QE policies,” Ms Rousseff said.
The world’s fast-growing emerging economies are concerned that QE policies in the US are a thinly disguised effort to weaken the dollar and lift US exports.