Photo: Suriani via Flickr
BRIC vs. BRIC!Despite the symbiotic relationship between China and Brazil (the latter being a major exporter to the former), the matter of currency intervention is creating a rift.
As WSJ notes, Brazil plans to use an April trip to apply pressure to Beijing over the yuan undervaluation, putting.
And it may be hard for China to push back:
China has sought to brush off Washington’s criticism of its currency as the unwarranted carping of a rich industrialized nation—something it won’t be able to do with Brazil.
“China may be more sensitive to what the other major emerging market countries think about its currency,” says William Cline, a senior fellow at the Peterson Institute for International Economics. “It undermines their moral high ground when it’s Brazil criticising them instead of the U.S.”
Anyway, not necessarily huge — this currency war stuff can be overblown — but definitely interesting.