Brazil Says Currency Wars Are Still On; More Measures Coming

As we reported here a few weeks ago,.Guido Mantega, Brazil’s finance minister, says Brazil is preparing  additional measures to either contain the rise of the real, or mitigate the damages of its very signifcant rise.
Mr Mantega said the G20 is still a long way from achieving its goal of agreeing new guidelines for managing currencies.

He says there are struggles between countries such as the US and China, and the global currency war was “absolutely not over”.

He added that slow economic growth coupled with low interest rates in the U.S. and other advanced economies continued to put pressure on Brazil’s currency.
“We always have new measures to take,” he told the FT from London.

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Mantega: “I gave a speech to investors and I hope they did not receive it too enthusiastically,”  “ because there is a tendency for too much capital to enter”.

Mr. Mantega insisted that Brazil had to take other actions because domestic interest rates were already high, to curb inflation, and further rate rises alone tended to encourage further capital inflows.
“Monetary policy is very tight in Brazil and the level [of interest rates] in real terms is higher than in other [emerging] countries,”