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Ahead of this week’s G20 meet in Moscow, Mantega predicted stimulus policies will be a high-point of discussions at the meet.
With Europe joining in the depreciation of the euro the global “currency war” could worsen, Mantega asserted.
The finance minister told Reuters that European countries should focus on reviving their economies with more investments, rather than trying to weaken the euro to protects jobs.
“We will continue to have this currency problem unless the global economy takes off,” Mantega said.
“The solution here is to make their economies more dynamic and jolt them out of stagnation.”
Last week Francois Hollande, the French President called for a weaker euro and urged the eurozone to set a mid-term target for its exchange rate.
More than two years ago Mantega used the term “currency wars” to describe the developed nations trying a series of competitive devaluations to bolster their exports during the global economic crisis.
Brazil and other fellow BRICS nations says this damages emerging market nations.
Mantega said that approach was not right for everyone – especially for heavily industrialised nations.
“It is useless for the European Union to try to get out of the crisis by exporting more to the United States, Asia or even Brazil,” the minister said.
“We are battling over the scraps. We are elbowing each other to compete in a very restrictive market.”