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Brazil blasts US monetary policy

Brazilian President-elect Dilma Rousseff has criticized the latest round of quantitative easing measures put in place by the US Federal Reserve.

Rousseff said that forcing the devaluation of the US dollar was a serious issue and it will ultimately damage the economy of all countries worldwide, Xinhua reported.

“I think this weak dollar policy is grave for the entire world. It is a matter that has always caused problems,” she said in the South Korean capital, Seoul.

Rousseff was officially invited to the Group 20 summit in Seoul along with the incumbent Brazilian President Luiz Inacio Lula da Silva and the country’s Finance Minister Guido Mantega.

According to Rousseff, Brazil will need to take further measures to halt the rise of its currency. She, however, did not specify which measures the Latin American country would take.

“We will have to take a careful look and take all the possible measures,” she went on to say.

The Brazilian president-elect also pointed out that she agreed with Mantega’s suggestion of using numerous currencies instead of just conducting transactions using the US dollar.

Lula has also stated that he would discuss the possibility of reducing the dependency on the US dollar.

Brazil has already used local currencies to trade with some countries, such as Argentina.

In addition, Lula stressed the importance of reaching a common decision on the exchange rate matter, saying it is better to communicate rather than quarrel.

“It is not every man for himself and God for all. It is everyone for everyone and God for all. Only then it will work out,” Lula said.

Rousseff is getting ready to take the helm of Latin America’s largest economy on New Year’s Day.

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