U.S., Brazil share interest in fx flexibility: White House

Reuters News
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Posted: Mar 21, 2011 3:36 PM
U.S., Brazil share interest in fx flexibility: White House

WASHINGTON (Reuters) - The United States and Brazil would both benefit if other countries allow their exchange rates to be set by market forces, a top White House aide said on Tuesday in a coded reference to China.

Brazil, like the United States, has voiced concern that its manufacturers suffer from cheaper Chinese imports due to Beijing's policy of keeping its yuan currency artificially low against other nations' currencies.

"The U.S. and Brazil have common interests, as expressed through the G20 in addressing imbalances in ensuring ... there's balanced demand from around the world and that countries move toward flexible, market determined exchange rates," said White House international economic adviser Mike Froman.

U.S. President Barack Obama will visit Brazil, Chile and El Salvador between March 19 and March 23 to promote ties with Latin America and to discuss pressing regional issues like trade, migration, drug trafficking and energy security.

(Reporting by Alister Bull and Patricia Zengerle; editing by John Whitesides)