[3:00 PM] The White House is trying to soothe Brazilian nerves after treasury secretary Paul O’Niell warning that Latin American countries needed to reform themselves so that international aid “does some good and it doesn’t just go out of the country to Swiss bank accounts.” This article goes on to state that “[r]ecent figures showing stable bank deposits also suggested there had been no significant capital flight.”
During the period of July 29-30 the Brazilian real lost 8.4% of its value and is down substantially this year against the U.S. dollar. Why does the U.S. care so much about Brazil and not Argentina? Because the Brazilian economy is much larger and U.S. banks are at greater risk there. Still, not very encouraging from the “put Latin America first in foreign policy” administration.
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posted 3:14 PM
During the period of July 29-30 the Brazilian real lost 8.4% of its value and is down substantially this year against the U.S. dollar. Why does the U.S. care so much about Brazil and not Argentina? Because the Brazilian economy is much larger and U.S. banks are at greater risk there. Still, not very encouraging from the “put Latin America first in foreign policy” administration.
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