* Brazil to use capital inflows to build up FX reserves

* Dollar adjustment effects felt unevenly by countries

* G20 to discuss FX regimes, exit strategies (Adds details, background)

By Sebastian Tong

LONDON, Nov 5 (Reuters) - Brazil will use capital inflows into the country to build up its foreign reserves, continuing to buy dollars to smooth over any price distortions arising from the liquidity influx, the head of the country's central bank said on Thursday.

Henrique Meirelles also said there would be some discussion among finance ministers at the upcoming Group of 20 (G20) meeting on how the effects of the weakening dollar arising from the global rebalancing were being felt unevenly among countries.

In a Reuters interview ahead of the G20 meeting on Friday and Saturday, Meirelles said the strong inflows into Brazil were not only a consequence of the liquidity pumped into leading economies such as the United States to combat the global downturn, but also due to Brazil's strong economic fundamentals.

"We will take advantage of the net inflows for Brazil to build reserves and to strengthen the resilience of the Brazilian economy," Meirelles said.

"But we take into consideration policy...also to avoid price distortion in the market as a result of lack of, or excessive, liquidity."