Franco's Devaluation.ITAMAR FRANCO Itamar Augusto Cautiero Franco, usually known as Itamar Franco (pron. IPA: [ita'max 'fɾɐ̃ku]), (born June 28, 1930) is a Brazilian politician who was President of Brazil from October 2, 1992 to January 1, , THE FEISTY MINAS GERAIS governor and former Brazilian president, is at it again. Franco sparked Brazil's economic slide earlier this year when he threatened to default on state bond payments, panicking investors. Now Franco threatens to divert the rivers that supply the Furnas Cetrais Eletricas hydroelectric plant in a bid to keep the utility from being privatized. "We will never hand over our rivers," Franco said. The sell off of federally owned Furnas is a part of a massive privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned schedule that, if it actually happens, should recharge investor interest in the country and help whittle down Verb 1. whittle down - cut away in small pieces wear away, whittle away damage - inflict damage upon; "The snow damaged the roof"; "She damaged the car when she hit the tree" the nation's huge domestic debt. The process has been held up--not by Franco but by court delays that are typical in Brazilian privatizations. Franco's last stand brought on the real's devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. . This time around, the currency's value held at 1.78 and no one seems to be paying Franco much attention. |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion