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South America's Currency Plans
In order to address the distortions on local currency caused by increased worldwide liquidity and import dumping, South America’s top economic analysts, policymakers and monetary authorities will be meeting in Lima and later in Buenos Aires to formulate a plan of action.
The announcement was made by Argentine president Christina Fernandez and Brazilian president Dilma Rousseff in Brasilia, during July 29th ceremony inaugurating the Argentine embassy in Brasilia.
Referring to a joint statement by the presidents, Ms. Roussef said,“We must define joint and specific actions to defend our countries from the excessive liquidity that artificially revalue our currencies, and from the avalanche of manufactured goods which can’t find a market in advanced countries and impact on employment and industry in our region.”
The plans for the meetings were originally made during the UNASUR (Union of South American Nations) meeting held in Lima on July 28th, following the official inauguration of Peruvian President Ollanta Humala, who chaired the UNASUR meeting.
Political dust-kicking and posturing dominated the UNASUR round in Lima, a meeting of nations irrelevant on the international scene only years ago. Rousseff pointed out the excellent recent economic track record of the continent as a whole, the strength of South America, and it’s progressive social platform compared to current situations in developed countries.
“We are a very attractive and tempting region (globally) and we must face the challenge with an armour of integration, not of isolationism”, said Rousseff adding the asteism, “Argentina and Brazil have a major responsibility over the rest because I believe we have higher industrial, scientific and technologic [sic] developments.”
For her part, Argentine president Cristina Kirchner bragged, “What a difference with other parts of the world today dominated by recession, unemployment, financial and fiscal chaos and above all by political paralysis in solving the challenges they have before them.” Ms. Kirchner also stated that during the Unasur meeting in Lima, “for the first time the region had a shared vision towards global economic problems” adding that Colombia’s leader Juan Manuel Santos proposed the economic planning summits.
The meetings are scheduled for next August 4th in Lima and on August 11th in Buenos Aires. The first meeting will consist of economic ministers, who will pass on recommendation to the Central Bank presidents in attendance at the second meeting.
With the U.S. dumping it’s dollars on the region for lack of otherwise motivated buyers, South America’s currencies have appreciated substantially which has made imports cheaper and manufactured exports more expensive, threatening the domestic market manufacturing jobs which were once the region’s backbone.
Poor handling of the influx of cash has also led to credit bubbles and inflation crises, all of which the leaders at the meeting will address.
http://internationalliving.co/south-americas-currency-plans-291948.htm
