BRASILIA, June 24 Brazilian President Dilma
Rousseff plans to propose that other emerging market nations use
their central banks to jointly act to mitigate the impact of a
stronger U.S. dollar, newspaper Valor Economico reported on
Rousseff intends to speak with Russian President Vladimir
Putin and China's President Xi Jinping on Monday to discuss the
proposal, Valor reported, without citing its sources.
Rousseff's office declined to say whether the leaders would
talk on Monday.
During the 2008-2009 global financial crisis, central banks
from several major economies agreed to carry out currency swap
agreements among themselves to bolster liquidity.
In March, Brazil and China agreed to set up a currency swap
line that allowed them to trade the equivalent of up to $30
billion per year in their own currencies.
Expectations that the U.S. Federal Reserve will cut its
massive stimulus program soon has dragged the Brazilian real
to four-year lows, prompting the government to remove
capital controls in a bid to bring more dollars into the
The sharp depreciation of the real has raised worries about
the risk to local companies with large debts in U.S. dollars. A
weaker currency could also stoke already-high inflation in
Brazil by raising the value of imported goods.