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Merkel worries about Brazil receiving a “tsunami” of cheap money.

President Dilma Rousseff and German Chancellor Angela Merkel on March 5, 2012. Photo Credit AFP

 

President Dilma Rousseff and German Chancellor Angela Merkel on March 5, 2012. Photo Credit AFP

President Dilma Rousseff and German Chancellor Angela Merkel on March 5, 2012. Photo Credit AFP

Brazil have urged European Union to do more to stabilise the euro before the International Monetary Fund IMF agrees to release more funds for struggling euro zone states like Italy and Spain.

“The Brazilian President spoke of a ‘tsunami of liquidity’ and expressed her concerns,” Merkel said in reference to the visit to Germany of Brazilian President Dilma Rousseff.

Merkel and Dilma Rousseff met at Hannover where the Brazilian president was invited to open a high technology event.

During her visit , Rousseff slammed expansionary monetary conditions in Europe saying the Brazilian government may take more measures to stem currency gains being fueled by “protectionist” policies in rich european nations, but dismissed Brazil would impose capital inflow controls.

Due to the euro crisis in Europe, Brazil’s currency has appreciated about 7 percent this year, contributing to a loss of competitiveness for Brazilian exports and an influx of imported goods. The real traded about…READ MORE HERE