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

To: Arran Yuan who wrote (62099)	3/22/2010 6:35:22 AM
From: elmatador	Read Replies (1) \| Respond to of 217986

Brazil is not overly affected by a weak Chinese yuan that other major economies complain makes China's exports too cheap, the country's central bank president said on Sunday. "In the case of Brazil, evidently these kinds of imbalances have some influence but ... our economy today is very much diversified, growing now, basically led by domestic demand growth," he told reporters at an annual Inter-American Development Bank meeting in the Mexican resort of Cancun. Yuan value not big issue for Brazil -Meirelles Sun Mar 21, 2010 9:16pm EDT* Value of Chinese yuan not a big worry for Brazil * Meirelles still undecided on presidential bid (Adds comment by Brazil central banker) By Noel Randewich CANCUN, Mexico, March 21 (Reuters) - Brazil is not overly affected by a weak Chinese yuan that other major economies complain makes China's exports too cheap, the country's central bank president said on Sunday. Central Bank President Henrique Meirelles said Brazil's flourishing economy was being boosted by strong internal demand and so China's impact on imports was less of a worry for it than for countries such as the United States. "In the case of Brazil, evidently these kinds of imbalances have some influence but ... our economy today is very much diversified, growing now, basically led by domestic demand growth," he told reporters at an annual Inter-American Development Bank meeting in the Mexican resort of Cancun. "We are watching this closely, but it is not necessarily what is the most important concern for us at this moment," he said, asked to comment on the yuan and whether it was a problem for Brazil. "Risk aversion (that) increased in international markets as a result of the problems in Europe now are probably the most relevant factors to be watched currently by everyone," he added, referring to fears about a Greek sovereign default. But Meirelles stressed that Brazil's economic rebound is in good shape, adding that the private sector would be ready to take over once a stimulus package of loans channeled through the state development bank BNDES comes to an end in June. "It has been very important to the recovery of the level of investment in Brazil," he said of the stimulus measure. "Evidently (it) is going to end by June. I think private demand and credit growth in Brazil are on a sustainable path. I don't think it's any problem, the end of that stimulus." Political pressure is growing in Washington to declare China a currency manipulator, with some U.S. senators threatening to slap duties on Chinese products if Beijing does not allow the yuan, also known as the renminbi, to rise. Major exporting nations want Beijing to abandon its peg of 6.83 yuan to the dollar imposed in mid-2008 to help Chinese exporters weather the global financial crisis. In the three years before that, Beijing had let the yuan CNY=CFXS climb 21 percent against the dollar. Asked if he planned to step down from his post by an early-April deadline to run in Brazil's presidential election this year, Meirelles said he had yet to make a decision. "I have lots of time yet," he said. (Writing by Robin Emmott, editing by Diane Craft and Matthew Lewis)