Currency wars and 'the phantom menace' facing the global economy.
Latin Trade › Vol. 18 Nbr. 6, November 2010
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TRADING VIEWS
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Currency wars and 'the phantom menace' facing the global economy.
After mounting an intervention of words, Brazil has taken concrete steps to fight the appreciation of its currency. The country recently doubled from 2 percent to 4 percent--and then hiked again to 6 percent--its tax on capital inflows into the local fixed-income market. Government authorities also expanded the Treasury Ministry's ability to pre-fund external liabilities coming due in the future.
The motivation is clear: Brazil is seeking to fight the ...See the full content of this document
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