Brazil’s Economy Minister believes Eletrobras privatization will occur this year

RIO DE JANEIRO, BRAZIL – At a press conference held on April 21 at the Brazilian Embassy in Washington, Brazil’s Minister of Economy, Paulo Guedes, said he believes that the “privatization of Eletrobras will occur this year, very soon.”

He pointed out that he “wants to believe” that the Federal Court of Accounts is in the final stretch of analysis on the company’s privatization process, which he pointed to as capitalization. “I am very confident that it will work out,” he stated.

The minister pointed out that the capitalization of Eletrobras is an important step for Brazil’s energy security.

According to him, the company needs to invest R$15 billion (US$3.2 billion) per year to maintain its market share but can only invest R$3 billion per year.

DOLLAR X REAL

Guedes said that the improvement of fiscal fundamentals in Brazil, in a context of increased interest from companies in the country, with US$200 billion of “contracted investments” in several productive sectors, leads the country to a new situation concerning the exchange rate. “There has been a 15% appreciation of the real against the dollar this year, the biggest in the world this year, which shows an international reassessment of Brazil,” he said.

When questioned about what would be the tendency of the national currency against the American currency with this favorable conjuncture for the country described by him, Guedes commented that the overshooting of the depreciation of the real against the dollar is over and that “the exchange rate will follow this new international wave that Brazil is going through”.

In a press conference at the Brazilian embassy in Washington, the minister showed much enthusiasm for a new international evaluation of the country, which occurred in the context of the ruptures of global production chains and commodity highs, especially oil, especially with the Russian military operation in Ukraine. “The plug has fallen in Europe with the war and the need for food and energy security.”

Asked if this International Monetary Fund (IMF) meeting was where he perceived the greatest receptivity from global economic and financial authorities, he pointed out, “By far, the best of all. I felt at the IMF that Brazil is being treated differently and much better. We have never been perceived in the world as we are now.”

With information from Estadão