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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (55806)	10/16/2009 2:44:33 AM
From: elmatador	Respond to of 218118

Brazil Fin Min: 'A Little Worried' About Real's Surge -Estado RIO DE JANEIRO (Dow Jones)--The stunning rise of the Brazilian real versus the U.S. dollar in recent weeks is causing some consternation among local monetary authorities, Finance Minister Guido Mantega said late Thursday. "I'm a little worried," Mantega was quoted by the local Estado news agency as saying. Mantega made the comments during an appearance in Sao Paulo. The real's recent surge against the greenback is the reflection of massive foreign investment inflows and the country's strong economic performance in the wake of the global financial crisis, Mantega said. "Brazil today is unanimously seen abroad as the most attractive of the emerging markets," Mantega said. Estado reported that sources within the government are considering a renewal of a tax on financial operations that would stem the inflows. Mantega has discussed the measure with President Luiz Inacio Lula da Silva, Estado said. The real closed Thursday at its strongest level in 13 months, breaking the BRL1.70 barrier to end at BRL1.6993. The Brazilian central bank has been powerless to stem the currency's gains, despite near-daily purchases of dollars from the spot market to sop up excess liquidity. Foreign investors are piling into Brazil after the country's resilient economy bounced back strongly despite the global recession. Mantega said that Brazil's fiscal stimulus and countercyclical measures, which he called "very successful," would total about BRL34 billion to BRL35 billion in 2009. That was the equivalent of about 1.2% of gross domestic product, the finance minister added. "The employment of these resources was positive for the economy," Mantega said. "Without their application to stimulate consumption and production, the country - in my calculations - would have registered a decline of three percentage points in GDP." -By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com