BrazzilMag

Specifically when foreign leaders speak I check the 'adjectives' and the only one I find relative to this article is "gradual". The Chinese will indeed be 'more' flexible, but don't expect them to continue propping up the dollar.

While I agree that China needs to be discouraged from it's current policy of devaluing the renmimbi Brazil should remember the appallingly anti-competitive state of the Brazilian economy. Just the issue of transport across Brazil throws up:

Distorted car and truck prices
Distorted car and truck depreciation
Lack of diesel car choice in an enormous country
Insecure roads
Exorbitant road tax, car insurance and road tolls
Anti-competitive interstate taxation law

Brazil has a dysfunctional economy and devaluation of the Chinese currency will not fix it. Steve Jobs of Apple recently gave his verdict on Brazilian taxation in response to a request for a Brazilian Apple store. It wasn't pretty.

Brazil needs to stop patting itself on the back for world commodity inflation and fix its bureaucracy and the burgeoning public sector.