From the Newsroom*
São Paulo – The Brazilian government is going to develop an emergency industrial policy for five sectors directly affected by the depreciation of the dollar against the Brazilian real. At the end of the day yesterday (15), one dollar could be bought for 1.98 Brazilian reais (below 2 Brazilian reais for the first time in six years). This depreciation harms Brazilian exporters.
The sectors to be helped will be the textile, shoe, furniture, naval and automotive. They should receive reductions of taxes on the payroll and financing with fast payment by the Brazilian Development Bank (BNDES).
According to the minister of Development, Industry and Foreign Trade, Miguel Jorge, the government is also studying the possibility of increasing the Import Tax on some products to make competition with Brazilian products harder.
*Translated by Mark Ament
