Brazilian Finance Minister Guido Mantega has been saying out loud what his colleagues have been whispering: the time of the US dollar as reserve currency is over.
Although nations now have the tools to defuse a standoff, the possibility of a currency war "absolutely" remains, Brazilian Finance Minister Guido Mantega said at the conclusion of the two-day summit.
Brazil's Finance Minister Guido Mantega recently told the Financial Times that the global currency war "was absolutely not over," and cited two countries that, according to him, have not ceased the hostilities: China and the United States.
Brazil has declared a fresh “currency war” on the US and Europe, extending a tax on foreign borrowings and threatening further capital controls in an effort to protect the country’s struggling manufacturers.
Guido Mantega, the finance minister who was the first to use the controversial term in 2010, said the government would not “sit by passively” as developed nations continue to pursue expansionary monetary policies at the expense of Brazil.
“When the real appreciates, it reduces our competitiveness. Exports are more expensive, imports are cheaper and it creates unfair competition for businesses in Brazil,” he said on Thursday after announcing changes to the so-called IOF tax