Minister declares government will not take reserves to control exchange rate
Planning Minister Nelson Barbosa
Planning Minister Nelson Barbosa declared that the governemnt is not considering taking international reserves to raise cash or to influence exchange rate fluctuation. According to the minister, the 360 billion dollar reserves have enabled the government to have autonomy on the country's economic policies. “There is no decision, the Brazilian government has no plan of selling international reserves,” said Barbosa this Monday (July 27) after a meeting with the political coordination, led by President Rousseff.
“The amount of reserves grants autonomy to the Brazilian state to conduct its economic policy without having to appeal to international organizations and, especially, it gives the Brazilian society the ability to withstand currency fluctuations, without causing financial or fiscal problems," he mentioned.
The minister minimized the negative market response to the reduction in the primary surplus target, anounced last week, and declared that exchange rates will stabilize. He also pointed out that the government has “complete control over the situation” and has the instruments to reduce debt and inflation and resume growth.
“We are facing a period of rebalancing and adjustment. During this period, there is a temporary rise in inflation and a slowdown in the pace of economic activity, with some prices fluctuating. But we are taking the direction towards macroeconomic rebalancing again, and especially the direction towards growth recovery,” he added.
Translated by Amarílis Anchieta
Fonte: Minister declares government will not take reserves to control exchange rate
