Your answers to questions 25-30 must be based on the text below entitled “Brazil boosts the dollar”.

Brazil boosts the dollar

How long can the run on the dollar continue? Last year’s dollar slump, with its attendant rise in commodity prices, ended when the market put paid to it. This time governments are attempting to slow it down. But it is not, as widely expected, the US government that is doing this. Instead, the Canadian dollar dropped sharply on Tuesday after the Bank of Canada issued a warning over the currency’s recent strength. Brazil’s government went further, imposing capital controls to stop the real gaining at the dollar’s expense. Other countries, it appears, have more to lose from a weak dollar than the US does.

Perhaps as a result, there was a day’s pause in the trade that has seen the dollar hit 14-month lows while oil, denominated in dollars, briefly hit $80 a barrel before falling. Brazil’s imposition of a 2 per cent tax on capital inflows, to both stocks and bonds, showed strong intent. This move brought the real, which has risen 54.5 per cent against the dollar since its nadir, down by 3.8 per cent. The Bovespa stock index, which has tripled since its low, fell 7.5 per cent in dollar terms at one point.

Brazil evidently fears that an overpriced real could endanger its recovery. Other exporters will be watching closely.

(Source: the Financial Times October 20- www.ft.com, adapted)

Your answers to questions 21-24 must be based on the text below.

In June this year, the BRICs, the world’s newest economic grouping, ended their first major summit by calling for a stable, predictable and more diversified international monetary system. But the leaders of Brazil, Russia, India and China, stopped short of criticising the world’s dominant currency, the US dollar. The group repeated calls for a bigger say in the global financial system through greater representation at major institutions, such as the World Bank.

But the final statement issued by the leaders made no reference to developing new reserve currencies to challenge the dollar, which Russia had called for at a separate event earlier in the day.

Analysts say that as the global recession bites, the four Bric nations are showing a growing willingness to work together. One expert claimed the significance of the summit would be political rather than economic.

(BBC News 16/6/09, adapted)

Your answers to questions 21-24 must be based on the text below.

In June this year, the BRICs, the world’s newest economic grouping, ended their first major summit by calling for a stable, predictable and more diversified international monetary system. But the leaders of Brazil, Russia, India and China, stopped short of criticising the world’s dominant currency, the US dollar. The group repeated calls for a bigger say in the global financial system through greater representation at major institutions, such as the World Bank.

But the final statement issued by the leaders made no reference to developing new reserve currencies to challenge the dollar, which Russia had called for at a separate event earlier in the day.

Analysts say that as the global recession bites, the four Bric nations are showing a growing willingness to work together. One expert claimed the significance of the summit would be political rather than economic.

(BBC News 16/6/09, adapted)

Your answers to questions 21-24 must be based on the text below.

In June this year, the BRICs, the world’s newest economic grouping, ended their first major summit by calling for a stable, predictable and more diversified international monetary system. But the leaders of Brazil, Russia, India and China, stopped short of criticising the world’s dominant currency, the US dollar. The group repeated calls for a bigger say in the global financial system through greater representation at major institutions, such as the World Bank.

But the final statement issued by the leaders made no reference to developing new reserve currencies to challenge the dollar, which Russia had called for at a separate event earlier in the day.

Analysts say that as the global recession bites, the four Bric nations are showing a growing willingness to work together. One expert claimed the significance of the summit would be political rather than economic.

(BBC News 16/6/09, adapted)

Your answers to questions 21-24 must be based on the text below.

In June this year, the BRICs, the world’s newest economic grouping, ended their first major summit by calling for a stable, predictable and more diversified international monetary system. But the leaders of Brazil, Russia, India and China, stopped short of criticising the world’s dominant currency, the US dollar. The group repeated calls for a bigger say in the global financial system through greater representation at major institutions, such as the World Bank.

But the final statement issued by the leaders made no reference to developing new reserve currencies to challenge the dollar, which Russia had called for at a separate event earlier in the day.

Analysts say that as the global recession bites, the four Bric nations are showing a growing willingness to work together. One expert claimed the significance of the summit would be political rather than economic.

(BBC News 16/6/09, adapted)