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.
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