In a note published on its official website, the Workers’ Party (PT) decided who was the main culprit for the rise in the dollar, following the details the day before by the president’s government Luiz Inácio Lula da Silva (PT).
the text, published on the party’s official page at 1:13 pm on Thursday (28), hours after the press conference by ministers Fernando Haddad (Finance), Simone Tebet (Planning and Budget) and Rui Costa (Casa Civil), attacks the financial market and completely exempts the federal government and Lula himself for the rise in the dollar.
The note begins by reproducing statements from the national president of the PT, Hoffmann’s blues. “The market spent weeks demanding cuts and, when the government presents fiscal effort and expense containment measures, to save R$70 billion in two years, it proposes a socially fair and fiscally neutral income reform; what happens? Send the dollar to the moon! The speculation against Brazil is impressive,” said the PT deputy, in a post on social media.
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“Gleisi’s statement comes at a time when Faria Lima shows, once again, her most perverse face. Rumors that the government would present a proposal to reform income tax, fairly exempting those who earn up to R$5,000, were enough for financial market speculators to cause a historic rise in the dollar. The American currency reached R$ 5.91 (during the day, it reached R$ 5.99), registering an increase of 18.1% and consolidating its highest nominal value in history, all even before the Minister of Finance, Fernando Haddad, confirm the news officially”, says the PT note.
“This rise was not limited to shaking the screens of the stock exchanges. It reveals an economy under intense market blackmail, as well as the financial elite’s disregard for the well-being of the population. While Haddad sought to adjust a proposal to reduce inequalities and promote tax justice, the rentiers attacked, prioritizing their privileges at the expense of the majority”, continues the party.
In the text, Lula’s caption also states that “exchange rate instability directly compromises the economy and affects the daily lives of Brazilians” and recognizes that, “with the dollar at high levels, inflation tends to put pressure on the prices of basic products, interest rates rise and credit becomes more expensive.”
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“Even sectors that traditionally benefit from the devaluation of the real, such as agribusiness, face increasing costs due to dependence on imported inputs. This logic of immediate profit, characteristic of speculators, compromises sustainable development and sabotages economic stability”, states the PT.
Campos Neto “Bolsonarist”
In the text, the party also turns its artillery, once again, against the president of the Central Bank (BC), Roberto Campos Neto, classified by the party as a “Bolsonaro supporter” – he will leave command of the monetary authority on December 31st; on January 1st, .
“BC de Campos Neto did nothing to contain the speculation that started yesterday, which already took the dollar to R$6 […] It was the obligation of the ‘monetary authority’ to intervene in the market against speculation since its predictable beginning, with swap auctions, demand for demand deposits and other instruments that exist for this purpose. It is a crime against the country”, says Gleisi.
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Market regulation
In the final part of the text on its official website, the PT defends the “regulation” of the market, without detailing how this could be done.
“The episode reignites an important debate: what is the role of the financial market in a society? When rentiers take advantage of uncertainty to profit, citizens are the ones who pay the bill. The volatility of the exchange rate, driven by maneuvers like Wednesday’s, demonstrates the need for a discussion on firmer regulation”, says the caption.
“Measures such as imposing exchange rate limits, greater transparency in operations and strengthening regulatory bodies can help contain the impact of speculative greed. It is necessary to fight against this economic model that allows a small elite to concentrate so much power and wealth, leaving the majority at the mercy of the fluctuations of their moods, in a system in which few profit while many lose”, concludes the PT.
