The Minister of Finance, Fernando Haddad (PT)stated this Wednesday (18) that the surge in the dollar seen in recent weeks is the result of a moment of great expectation surrounding the approval of fiscal measures in the National Congress.
At a press conference, the head of the economic team sought to demonstrate confidence in an exchange rate accommodation in the coming days. Haddad also reiterated the need for the cost-cutting measures analyzed by the Legislature this week not to be “dehydrated”.
“We are doing our part, which is to ensure that they are not dehydrated, convincing people that these are necessary measures to reinforce the fiscal framework from an expenditure point of view,” said the minister.
“I think there is a good understanding [por parte dos parlamentares]. Conversations with the rapporteurs are good. Yesterday one passed in the Chamber and today the other two should be voted on, including the PEC [Proposta de Emenda à Constituição]”, continued Haddad.
The minister confirmed that he will meet, in the early afternoon, with the president of the Senate, Rodrigo Pacheco (PSDB-MG), to align the voting calendar for the fiscal package projects.
“I’m going to talk to President Pacheco now to see what time limit he will receive the measures to be able to vote tomorrow or, at the latest, on Friday, and be able to close the Budget, which depends on these measures to be organized in a way that respects the budget limits provided for in fiscal rules”, stated Haddad.
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According to the Minister of Finance, “the scale of cost containment will be maintained”. “It is important to keep this at a level close to the Executive’s wishes, so that the measures do not become dehydrated. All we need is to guarantee revenue and expenses to meet the intended goals”, he said.
“At this time when things are pending, there is a climate of uncertainty that will make the exchange rate fluctuate. But I believe he will settle down. I have talked a lot with financial institutions. Inflation forecasts for next year, exchange rate forecasts for next year, so far, are better than what speculators are making. The exchange rate fluctuates, the BC has acted, the Treasury has started to act in the repurchase of bonds, and we will continue to monitor it until it stabilizes”, minimized Haddad.
Still according to the head of the economic team, “the Treasury works with fundamentals” and “these more speculative movements are curbed with intervention from the Treasury and the BC”.
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“It works like this. There have been other moments in recent history when unanchorings of this type have occurred. There have been tense days that then settled down,” said Haddad.
“[O corte de gastos] It is not a job that ends. We will monitor and evaluate what was approved. We have the issue of payroll tax relief, which is pending before the Supreme Court that we will need to resolve”, he added.
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On Tuesday, the spot dollar ended the day up 0.1%, quoted at R$6.0982 – the highest closing nominal value in history.
Tax reform
In the interview with journalists, Fernando Haddad also celebrated the .
The text now goes to the president for sanction Luiz Inácio Lula da Silva (PT).
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“It was a historic feat, after more than 30 years of waiting. I would like to thank the presidents of both Houses once again. Without them having personally acted in carrying out the work, this reform would have been impossible”, said Haddad.
