In the 31st edition of the Brazil-Germany Economic Meeting, Brazil President Dilma Rousseff took the opprtunity to defend the economic policy of her government and strengthen the argument that monetary policy and exchange rate of the rich countries are the main cause of the loss of competitiveness of Brazilian industry. For Dilma, the “monetary injections pressured emerging currencies that have appreciated and affected our competitiveness.” In response, he said, the government is seeking to take steps to create a more healthy and competitive for Brazilian companies, and seek to eliminate production bottlenecks and make the country more attractive for foreign companies.
Our opinion: Awesome, simply awesome… “it’s not our fault, it’s their fault!”
Question: well, then why the Brazilian central bank has been intervening in the forex market and not letting the Real devalue in the last few months? Isn’t because the inflation is high and they are preventing it from becoming even higher? Then the argument here is that developed countries are making Brazil’s inflation a favor by keeping the Real expensive.