Future president of the BC says that city hall’s actions will be focused on situations of “dysfunctionality”; currency remains above R$6
The future president of (Central Bank), Gabriel Galípolo, stated this Monday (2.Dec.2024) that, under his direction, the autarchy will not resort to using Brazil’s US$370 billion foreign exchange reserves to intervene in the value of the dollar. The statement was made during an event at the in São Paulo.
According to Galípolo, the BC’s actions will be focused on situations of imbalance. “This is a discussion that will sometimes arise: ‘You have US$370 billion in reserves, why don’t you hold the dollar close to your chest?’. Anyone who is in the market and is watching knows that this is not how it works, and in fact we will continue to do things just for reasons of lack of functionality, such as having seasonality at the end of the year.”these.
The North American currency has remained above R$6 since Friday (Nov 29). It was the closure in the story. This Monday (2.dec), the
The current director of monetary policy at the BC also stated that the floating exchange rate is one of the “pillars” of the Brazilian economic matrix and that it is fulfilling its role “very good”.
“The floating exchange rate is one of the pillars of our economic matrix, essential for us to go through moments like the ones we are seeing now. So I don’t see any kind of significant change, the floating exchange rate is fulfilling its role very well”, he concluded.
The BC can intervene to slow down the price of the US currency by injecting dollars into the market, as a greater supply of the US currency helps to slow down the devaluation of the real.
