According to him, the dollar is only too high, causing inflation, due to the “political noise” caused by Jair Bolsonaro.
BRASILIA (Reuters) – Economy Minister Paulo Guedes said on Tuesday that the balanced exchange rate today should be between SAR 3.80 and SAR 4.20, noting that the political uproar does not allow the US currency to depreciate.
Until that happens, there is no problem because exports will ultimately benefit, he noted, when participating in the MacroDay 2021 event promoted by BTG Pactual bank.
“We will go to half a trillion (dollars) of the current trade with the world, and this has never happened before. A hundred billion dollars in the trade balance, and this has not happened before,” he said.
“This dollar was supposed to go down, but the political uproar is not allowing it to go down. No problem. It’s time for more exports,” he said.
On Tuesday, the dollar closed up 0.68%, at 5.2589 riyals, more than 1 riyal above the maximum equilibrium level indicated by the minister. The rise of the US currency is one of the factors that contributed to the progress of strong inflation in the country, which made products offered at their world price more expensive, such as fuel.
On the political issue, Guedes once again expressed his confidence in democracy and in Brazilian institutions, noting that there are excesses, but in a reality in which proxies – including President Jair Bolsonaro – do not cross the line.
“Brazil is a resilient, strong, and well-developed democracy. Actors commit excesses, sometimes the president leaves the can, sometimes a minister from the Supreme Court arrests people, every time someone jumps a fence and walks through the wilderness,” he said.
“What is happening quickly? Institutions are improving and they are calling on citizens to return to kindergarten,” he added.
The Minister also defended that the idea of limiting the growth of court orders to the base of the roof would pave the way for the government to implement the Bolsa Família as previously planned, at an interest of 300 reais, noting that this is “zero”. Priority for now.
“So we’re fighting for this,” Geddes said, referring to the so-called CNJ (National Council for Justice) solution.
The average benefit of the Income Transfer Program today is about 190 riyals.
Guedes indicated that the government would strive to bring forward a proposal to amend the Constitution (PEC) of the precatoria, which provided for payment in installments by the union for legal defeats finally incurred in court, as in the dissolution of the CNJ.
In line with the STF, this solution limits the payment of court orders in one year with the same dynamics as the spending cap rule. However, that account will only start to grow by the inflation measured by the IPCA in the 12 months through June of the previous year. The amount that exceeds the payment limit in court orders in one year will be deferred to the next year, creating a kind of waiting list for receipt of payments, with priority given in the access order.
“Zero priority is Bolsa Família 300 reais, the president already said 300 reais, within the ceiling, with financial responsibility,” Guedes said.
“We will work through the judiciary, through the legislature, whoever arrives first wins the ‘I help Brazil’ cup,” he added.
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