With weak dollar, imports invade Brazil

The excessive increase of imports affect the Brazilian industries, exports and creating more jobs in the country.

In Brazil, one of the most visible effects of the depreciation of U.S. currency is the invasion of imported goods.

Italian pasta, tomato sauce, American, diapers also the United States or Mexico. Chilean merlot wine to R $ 11.98 more expensive and domestic, to R $ 13.90. The doll made here, R $ 12.97, which came from China, good looking, $ 8.

It is the effect of the cheap dollar. On Thursday, the dollar fell the most for a single day in five months. Listed closed R $ 1.678. In the year, the dollar down nearly 4% as a result of the large amount of dollars that arrived in Brazil. Part goes to the stock exchange that, on Thursday, was up 1.52%.

But the Brazilian industry is suffering from the weak dollar. At the auto show, the stars are imported. Chinese manufacturers are only nine. And the loss has two sides: on the domestic market, imported come with affordable price and compete with national ones. In foreign markets, our products become more expensive and lose share of sales.

Today, of every hundred cars peaked at Brazil, nearly 20 are imported. Some years ago there were only five.

"As we are increasing imports too, we're creating jobs outside the country when it is okay to increase exports in Brazil and we generate jobs," said Cledorvino Belini, Anfavea.

The finance minister, Guido Mantega, says the American plan does not help the U.S. economy and only harms its trading partners.

"No point in throwing dollar helicopter on the economy because it will not sprout growth. The only result is that you have to devalue the dollar to the United States has increased competitiveness in international trade. So much so that today we are with a trade deficit with the United States. It affects us. "

But some people find that these dollars can ensure greater economic growth in Brazil.

"It's as if that money was burning in the hands of people and they wanted to go anywhere that has growth, which has higher income, firms increase their profits, ends up having a greater supply of investment, which is positive for the economy" said economist Luis Fernando Figueiredo.

Day's edition 04/11/2010

04/11/2010 21:50 - Updated 05/11/2010 15h24