Dilma says weak dollar has created a grave crisis

Brazil’s president elect, Dilma Rousseff, declared that the devaluation of the dollar has  caused a grave problem for the whole world. As a guest at the G-20 summit, Dilma will attend meetings but will not participate. However, she has defended positions that Brazil, in the person of president Luiz Inacio Lula da Silva, will present at the summit.
The Brazilian government has condemned isolated action, such as recently practiced by the United States and China, saying it amounts to protectionism,  and disrupts the world economy. Lula and other Brazilian authorities have strongly recommended a commitment by G-20 nations in favor of global action so as to protect world economic equilibrium.
Dilma declared that the recent decision by the United States to buy $600 billion worth of Treasury notes to stimulate the US domestic market, is an example of protectonism. “It is protectionism camouflaged, an effort to protect themselves,” she said.

“The weak dollar policy is a serious magtter of concern throughout the world. This is something that has always caused problems. The weak dollar policy transfers the burden of an adjustment in the American economy to other economies,” said Dilma. commenting on the suggestion by Brazil’s minister of Finance, Guido Mantega, to create a basket of other currencies besides the dollar for international transactions, Dilma said it was one of the ideas for dealing with the present crisis that was on the table and that any final decision would have to be negotiated.

Dilma reported that she had meet the South Korean minister of Transportation, Jong-Hwan Chung and that they discussed the high-speed train planned to run between Rio de Janeiro and São Paulo. “The Koreans are interested in construction projects in Brazil and will be welcome. They have lots of experience in building airports,” she said.