São Paulo – The governor of the Brazilian Central Bank, Alexandre Tombini, has said this Monday (23rd), in an interview by telephone to the foreign press, that the monetary authority is “optimistic” regarding Brazil’s economy for the next few months. He also said the “battle” against volatility on the exchange rate market is proving fruitful, as the US dollar is losing value against the Brazilian real.
“We are optimistic regarding the (economic) prospects for Brazil. We have good employment, and right now we are focusing on investment in the pipeline for the country,” said Tombini, referring to infrastructure investment due in over the next few months. He warned, however, that optimism concerning the economy is of the “cautious” type.
The Central Bank governor also acknowledged that emerging countries have been affected by exchange rate volatility in the past few months, caused by expectation surrounding the withdrawal of economic stimuli by the United States, which ultimately did not occur. Tombini noted that the measures designed to reduce the value of the dollar against Brazil’s real are proving fruitful.
“We have a plan in place to sell US$ 3 billion per week, and it has succeeded in curbing volatility. The plan has proved adequate, and we do not intend to change it,” he said. “As of this Monday (23rd), the US currency was down 0.779% by 2:10 pm, and was selling for R$ 2.202.
Tombini also said Brazil is evolving when it comes to fighting inflation, and the decline of the dollar is a contributing factor. Besides, the Central Bank has begun raising the benchmark interest rate to curb the rise of credit on the Brazilian market, and to hold inflation at bay. The benchmark rate has since risen from 7.25% to 9%.
*Translated by Gabriel Pomerancblum
