RIO DE JANEIRO, BRAZIL – “The government does not fear the US Dollar above R$4 because Brazil has good fundamentals,” said Brazil’s Minister of Economy, Paulo Guedes, on Thursday, 15, emphasizing that the devaluation of the Real may contribute to the reindustrialization of some sectors, such as textiles, footwear, and auto parts.
“If the Dollar goes to R$4.10 or R$4.20 we are prepared,” said Guedes in a speech during the closing talk of a seminar on oil and gas in Rio de Janeiro.
He stressed that he does not believe in the possibility of a “speculative attack” against the Real.
“We don’t have any concern with the exchange rate issue, and our growth dynamics is our own,” he said.
The US$ traded today, Friday, August 16h, at R$3.99.
The Economy Minister expects that the second semester of this year will be better for Brazil than the first. According to him, the early months of 2019 were challenging, but investments will happen from now on.
“I am not afraid of outside pressure, either from Argentina or the slowdown of the world economy,” he said, adding that the country has done its homework and now should grow faster.
“It’s not going to be a southern wind or the wind from all over the world that’s going to un-synchronize Brazil,” he added.
(Source: Abril)