Thursday, March 31, 2011

Currency Wars: Brazil May Take New Measures Against Inflow of U.S. Dollars

Alexander Tombini, the new Brazilian Central Bank President, said to members of the Committee on Finance and Taxation (CFT), that the Fed (Brazilian) is focused on fighting inflation and is attentive to the inflow of speculative capital in the country and "willing to take new measures" to contain the volatility of the exchange rate.

 Tombini made a presentation to parliamentarians on the macroeconomic situation, defending the recent actions of the CB to control the inflow of capital as the IOF tax on purchases and loans abroad.

According to the committee chairman, Mr Claudio Puty, the monetary authority cautioned that the Brazilian economy has experienced above average growth than, for example, European countries and to illustrate, he recalled that inflation in France reached 6.5%, with an interest rate fixed at 1% per annum.

Tombini parliamentarians reaffirmed that the Bank will work with the economy expected to grow 4% this year

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