Brazil Senators Propose Weakening Currency
When I hear about a weakening currency, at first it sounds like a bad thing. Brazil's senators are proposing a bill that would weaken the real. Brazil's real has experienced 47% inflation since 2004, which is hurting their economy. The proposal will let exporters keep money earned internationally in foreign currency. This will help exporters keep profits that would eventually be lost by the strengthening of the real. This allows them to pay off debts, imports, and investments, saving money in transfer costs. A more balanced currency will help stabilize Brazils economy.
Posted by rico at 2/27/2006 09:56:00 PM