The relationship between China and Brazil has extensive significance due to their position as two primary emerging market countries and economies, visiting Chinese Foreign Minister Wang Yi said here in Brasilia.
BRICS nations (Brazil, Russia, India, China and South Africa) have agreed to a 100 billion dollars currency reserve pool as a “financial firewall” in anticipation of liquidity strains and ‘currency shocks’ as the United States Federal Reserve moves to reduce monetary stimulus.
China and Brazil signed an agreement to do billions of dollars of trade in their local currencies, as the five-nation BRICS forum of emerging market powers work to lessen dependence on the US dollar and Euro.
The catch-up boom in China, India and Brazil is largely over and will be followed by a drastic slowdown over the next decade, according to a report by America's top forecasting body.
India has decided to raise its concerns over Argentina's recent import restrictions bilaterally, instead of joining the US and European Union who have taken the country to the World Trade Organization, reports the Economic Times from India.
China and the Inter-American Development Bank said on Monday they are starting a 1-billion US dollars fund to invest in Latin America, though the Asian giant’s latest push to expand its influence in the region prompted words of caution from Brazil.
Next April 9 Brazilian President Dilma Rousseff is expected in the White House and although formally relations are ‘excellent’, Brazil and the US have many dissenting issues, according to Andres Oppenheimer from the Miami Herald and considered an expert in Latin American affairs from the US perspective.
Jim O'Neill, chairman of Goldman Sachs Asset Management, lent his support to Brazilian policy makers' efforts to weaken the Real, saying it needs to decline 20% to keep Latin America's biggest economy competitive.
The Brazilian economy last year registered its second-worst performance since 2003 as higher borrowing costs and a currency that rallied to a 12-year high led it to under-perform emerging-market peers China and India.
Brazilian president Dilma Rousseff will be meeting her US peer Barack Obma next March when she is also scheduled to hold talks with Germany’s Chancellor Angela Merkel and attend a BRIC group summit.