Brasília – Agency Fitch Ratings’ decision of upgrading Brazil may increase the inflow of dollars into Brazil, which is a problem, in the opinion of the Brazilian minister of Finance, Guido Mantega. According to him, the more solid the Brazilian economy, the more the country tends to attract foreign investment, and therefore dollars.
"However, it is better to have an excess of dollars than to a shortage, as we did in the past," said Mantega. The minister did not rule out new measures aimed at containing the excess of dollars allocated to Brazil by foreign investors, due to the country’s solid economy and its interest rates.
"This upgrade of Brazil by Fitch, from BBB- to BBB, is an acknowledgement of the fact that the Brazilian economy has become more solid, poses no risk, and is being well rated, including rating agencies," he said.
The higher the rating by agencies such as Fitch, the safer it is for investors to allot capital to a given enterprise or country (click on the link below for article on Brazil’s upgrade)
*Translated by Gabriel Pomerancblum
