Brazil is another country that will be affected by the global turmoil, but the country’s strong economic fundamentals could help them to weather the storm better than most, Reuters reports.
Brazilian President Luiz Inacio Lula da Silva today authorized Brazil’s central bank to buy loans from cash-starved banks and indicated the government’s willingness to use the country’s international reserves to ease a credit crunch that sent the Brazilian real to its lowest level in two years.
The central bank has also announced that it may also lend dollars to Brazilian institutions abroad. The government is also going to provide the state developed bank with an additional $2.3 billion to finance exports. The measures are part of the process in keeping this emerging market safe from the eruption the developed markets have experienced, reports Edward Hugh for RGE Monitor.
Related ETFs:
- iShares MSCI Brazil Index (EWZ), down 59% year-to-date (black line)
- iShares FTSE/Xinhua China 25 Index (FXI), down 48.2% year-to-date (green line)
