Brazil is in a balanced economic situation and is not affected by financial market volatility amid the U.S. mortgage crisis, President Luiz Inacio Lula da Silva told a Wednesday press conference.
The United States mortgage crisis has triggered pessimism worldwide and Brazil's stock market has closed with losses on five consecutive days.
Nevertheless, Lula da Silva told media that Brazil is experiencing a moment of "great calm". "This is a problem for the U.S. and U.S. banks. It is not my problem. I am not worrying about it," he said.
"With a cushion of 160 billion U.S. dollars, this is nothing to worry about. Those who need to be worried are U.S. banks and those who invested in real estate funds there." Finance Minister Guido Mantega said at the same press conference.
He said the dollar would remain in a floating exchange rate regime, which adjusts as the economic conditions change.
The dollar, which a month ago had been at 1.85 reais, was trading at two reais on Wednesday, for the first time since since May 2006.
Source: Xinhua
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