Brazil is ready to take further steps to stop its currency from rising, the country's Finance Minister said on Sunday, warning of a trade war if government's keep pushing down exchange rates to boost exports.
This is a currency war that's turning into a trade war, Guido Mantega told the Financial Times in an interview published on the paper's website late on Sunday.
Mantega coined the term currency war last September, as government's manipulate their currencies' value to boost their export competitiveness. Mantega told the FT he would like to see China revalue the yuan.
We have excellent trade relations with China... But there are some problems as China is a big competitor in manufactured goods...Of course we would like to see a revaluation of the renminbi (yuan), he said.
Mantega also said the government would target the futures market to stem upward pressure on the real.
You can expect more measures on the futures market, he said.
Last week Brazil took steps to curb its hard-changing currency by making it more costly for banks to bet the real will keep strengthening.
(Reporting by Caroline Copley; Editing by Diane Craft)