Brasília – The Brazilian government wants to resume debate on the adoption of an exchange system other than the dollar-based one currently in effect for multilateral negotiations. The minister of Development, Industry and Foreign Trade, Fernando Pimentel, spoke today (16th) in favour of a discussion about the new system during a meeting with the Chinese minister of Trade, Chen Deming, at the Brazilian foreign ministry (Itamaraty). According to him, the current system, which is unfavourable to developing countries, needs to be rethought.
“The [Chinese] minister is sympathetic to the discussion of setting up a different model than the international standard. The exchange rate is a serious issue for emerging countries,” claimed Pimentel.
One of the proposals suggested by Pimentel is the adoption of a basket of currencies. The resource is used as an index for variation of financial assets, in order to prevent abrupt changes in the value of any given currency. The basket comprises currencies of different countries, usually the wealthiest ones. A reference average is set, based on which withdrawal rights with the International Monetary Fund (IMF) are established.
According to Pimentel, the matter should be discussed “at multilateral forums.” He acknowledged, however, that the discussion should be time-consuming. “It is a long-term discussion.”
The Chinese minister exercised caution when asked about the changes in the exchange standard. “This is a long-term analysis,” said Deming.
*Translated by Gabriel Pomerancblum
