08.10.2010 - Brazil central bank chief eyes currency market distortions
From WSJ: Brazilian central bank President Henrique de Campos Meirelles said Thursday that a combination of U.S. policies, European economics and China's fixed exchange rate has led to major distortions in currency markets. Addressing Brazil's recently launched sovereign wealth fund, Meirelles said its investment policies have not yet been decided. Quantitative easing and historically low interest rates in the U.S. have generated high liquidity, weakening the dollar against other currencies. At the same time, excess liquidity is flowing into countries such as Brazil as the euro is weighed down by debt problems in the European Union and China is controlling its foreign exchange rate..............................................Full Article: Source
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