[3] However, its position as a reserve currency damages American exporters because this increases the value of the United States dollar.
The Brazilian real is considered a strong South American currency; under presidents Luiz Inácio Lula da Silva and Dilma Rousseff, the real almost tripled in value, resulting in a vast change in economics, with many people who were middle class benefiting greatly.
[8] The minimum wage was raised, and Brazil's position as a leading exporter of raw materials, including soya beans and iron ore was underlined, but they are responsible for Brazil's improved economy, which damaged the "competitiveness of manufacturing",[8] reducing the amount of exports.
[10] In January 2011, after Chile announced that in 2011 the country planned to buy foreign reserves of $12 billion, the peso experienced an immediate fall in value.
[16] Although there is no confirmed timescale for the reform, whilst quoting Cuban economists, Reuters gave an estimation of 18 months (from October 2013).