Vice President Geraldo Alckmin, speaking at the Enaex event, asserted that a dollar rate of around R$ 5.10 could give Brazil a competitive advantage.
Yesterday, the dollar closed at R$ 5.17.
He stressed the importance of boosting productivity and competitiveness. In his view, exchange rates between R$ 5 and R$ 5.10 are ideal.
Additionally, he remarked that current interest rates are steep but decreasing.
Alckmin also highlighted the potential tax reforms. These reforms aim to lighten the load on exports and investments.
The Vice President also touched on Mercosur’s role in global trade. He’s optimistic about a pending deal between Mercosur and the European Union.
Initially agreed upon in 2019, the EU later added an environmental clause.
Finally, Alckmin mentioned the collective strength of the trading blocs. Together, they represent a quarter of the world’s GDP and comprise 800 million people.
Background
Brazil is part of the BRICS, a group of emerging economies. This positions it as a key player in global economic conversations.
In contrast, the European Union has more developed economies. The deal between Mercosur and the EU could be a win-win, offering market expansion for both.
Yet, environmental concerns play a significant role in today’s trade agreements, globally.
Brazil’s economy has been a topic of interest due to its recent challenges. The high interest rates and tax burdens are significant obstacles.
However, proposed reforms could pave the way for a more dynamic, competitive Brazil in the international scene.