Brazil Finance Minister: The Global Exchange Rate War Is "Not Yet Over"

In London, the Financial Times revealed that the group of 20 is still a long way from the goal of agreeing to the new guidelines on exchange rate administration, and there is still a "struggle" between the United States and China. The global exchange rate war is "definitely not yet over", G20 told London Financial Times.

Mantega said that the slow growth and low interest rates of developed countries continue to put upward pressure on Brazil's Real, forcing the government to consider further intervention in foreign exchange and derivatives markets, so as to limit the excessive appreciation of the currency.

"We have new measures to come out," he told the financial times. He pointed out at a meeting of investors that these measures would not be announced beforehand, but would include market intervention.

On Tuesday, the Central Bank of Brazil also announced that it would buy dollars in the spot market auction, which is another expansion of foreign exchange reserves and containment of Real.

In recent weeks, Real has reached a 12 year high against the dollar, but it fell 0.7% on Tuesday.

Brazil's move to control the appreciation of the currency highlights many of the problems faced by many fast-growing economies, including Turkey, Chile, Columbia and Russia, because allowing the appreciation of the currency will limit.