Emerging Markets Argue Fed Responsible for Drop

Brazil’s President Dilma Rousseff seems to have no doubt about it. According to media reports, she complained last week that “the withdrawal of the monetary stimulus in developed countries” was fueling “market volatility.”

The Governor of Brazil’s Central Bank Alexandre Tombini, of the “currency wars” fame, amplified that statement, saying that a lack of a “coordinated exit from exceptionally loose monetary policies” was done at the expense of emerging markets.

But he assured that Brazil had the means of resisting (i.e., defending its currency) the turmoil created by the developed countries because it had $376 billion worth of foreign reserves and currency swap agreements with other central banks.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza