Cover story: The problem with Brazil

Cover story: The problem with Brazil

Brazil Economy & Policy Corporate & Sovereign Strategy

By Thierry Ogier and Taimur Ahmad                  As ironies go, this one seemed especially bitter. Having for years called for a weaker currency, Brazil's finance minister Guido Mantega finally got what he wished for in 2013. By August, the Brazilian real had plunged to near five-year lows against the dollar, having lost 16% after the US Federal Reserve first hinted in May it would pare back its stimulus measures The sharp decline in the real had dwarfed its rise of three years earlier, which at the time prompted Mantega to coin the term "currency wars" to describe the effect of Western monetary policy on emerging market

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