Global Biz

Brazil urges G20 to solve currency war

Updated: 2010-10-21 10:44
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BRASILIA - Brazilian President Luiz Inacio Lula da Silva Tuesday urged G20 leaders from developed and developing countries to discuss a final solution to what he called a global "currency war."

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"It is important to remember that the problem is not only Brazil's. The problem is that the world's currencies are appreciating against the dollar because the United States needs to find a way to recover the economy," he said.

Lula said Brazil's export sector was hit by the devaluation of other countries' currencies, and the government would take more necessary measures to ensure the real doesn't become overvalued against the dollar.

He added that developed countries should take steps to get out of the economic crisis and offer assistance since Brazil is recovering strongly.

The real has risen 30 percent against the dollar since March 2009, and the government has now raised the tax on short-term foreign investment to 6 percent from 4 percent to avoid short-term inflows.

The G20 meeting of finance ministers and central bank chiefs will be held Friday to Saturday in Gyeongu in South Korea, and the G20 summit of world leaders will be held from November 11 to 12 in Seoul.