BRASILIA, June 24 (Reuters) - Brazilian President Dilma Rousseff plans to propose that other emerging market nations use their central banks to jointly act to mitigate the impact of a stronger U.S. dollar, newspaper Valor Economico reported on Monday.
Rousseff intends to speak with Russian President Vladimir Putin and China’s President Xi Jinping on Monday to discuss the proposal, Valor reported, without citing its sources.
Rousseff’s office declined to say whether the leaders would talk on Monday.
During the 2008-2009 global financial crisis, central banks from several major economies agreed to carry out currency swap agreements among themselves to bolster liquidity.
In March, Brazil and China agreed to set up a currency swap line that allowed them to trade the equivalent of up to $30 billion per year in their own currencies.
Expectations that the U.S. Federal Reserve will cut its massive stimulus program soon has dragged the Brazilian real to four-year lows, prompting the government to remove capital controls in a bid to bring more dollars into the economy.
The sharp depreciation of the real has raised worries about the risk to local companies with large debts in U.S. dollars. A weaker currency could also stoke already-high inflation in Brazil by raising the value of imported goods.