See also the currency ETFs. In addition, the Brazilian currency has appreciated over 45% since 2009: track currency ETFs live.
Today, Guido Mantega, Brazil's finance minister, criticized hard the Fed's decision to inject $ 600 billion into the economy. The minister warned of the risk that decision would create a "bubble" in the international market. Mantega says the measure could also exacerbate the imbalances in the global economy.
Mantega called the decision of the United States as "uncertain outcome" and he said he will criticize the U.S. measure at the next meeting of the G-20, in Seoul, South Korea
He added "it does not help the U.S. throwing dollars by helicopter" because it will not "sprout" growth in its economy. "This is a problem that could worsen if the United States persist in this policy. This will be an important topic to discuss in Seoul. We insist that the U.S. modify this policy and have other alternatives,"
He said that excess credit which the U.S. is putting the economy devalues the dollar and brings the problem to other countries. He said the U.S. needs to stimulate domestic consumption and fiscal measures and employment.
The finance minister also said that in Brazil there is no "danger" of a bubble in financial markets. That's because, he said, the government took measures to prevent the excessive flow of foreign funds into Brazil. "In Brazil, there is no danger of a bubble. Now, if the U.S. persists in this policy to inject funds in the market), we have excess credit is not being channeled into the production. This credit will end up being channeled to speculation ".
When asked whether new measures will be adopted to control the exchange rate in response to the Fed's QE2, the minister replied: "No, because in Brazil we are fortunately able to control the exchange rate appreciation. The Real is not appreciating because the measures we have taken. But this is a problem which could worsen."
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