Posts
Finance ministers from 12 UNASUR nations met in Lima concerned about foreign investment inflows that have quadrupled in Latin America since 2003.
Normally, investments inflows are considered boons...but foreign investors attracted by the region's relatively high interest rates have sent LatAm currencies soaring by an average of 25% since the end of 2008...making exports less competitive and punishing local manufacturers with cheaper imports.
Brasil is especially popular...because of its 5.79% real interest rate...and thus hard hit.
It has tried several measures to curtail what its FinMin Mantegna calls an "invasion from other countries."
Colombia's President Santos (above) called for the meeting:“The appreciation of the majority of our currencies is destroying our capacity to generate jobs. We are being very negatively affected.”
