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Lula Da Silva expressed concern about the devaluation of the real and spoke of speculation

Lula Da Silva expressed concern about the devaluation of the real and spoke of speculation
Lula Da Silva expressed concern about the devaluation of the real and spoke of speculation

The Brazilian President expressed concern about the local currency, which has weakened by more than 16% against the dollar.

EFE

The Brazilian president, Luiz Inacio Lula da Silvasaid Tuesday that he is concerned about the recent weakness of the country’s currencyadding that “something” must be done to confront what he called “speculation”.

Lula did not detail what measures could be taken to support the Brazilian real, which has weakened more than 16% against the dollar US dollar so far this year and is currently trading at its lowest level since January 2022.

Lula’s words after the depreciation of the real

“Obviously I’m concerned, it’s speculation. I’ve been talking to people to see what we’re going to do”“We have to do something – but I can’t say what, or I would be warning my opponents,” Lula told local radio.

Operators have linked the Recent currency moves to a stronger dollar globally and local fiscal concerns, as the market has doubts about the Brazilian government’s ability to meet its goal of eliminating its primary deficit this year.

On Tuesday, Lula again said that the Government He cannot spend more than he has and has promised to cut expenses if necessary.

He Lula’s economic team has been working on measures to cut spending amid growing pressure to balance public accounts, although the leftist leader has stressed that benefits for the poor will not be cut.

Real Brazil.jpg

Doubts about the fiscal deficit have raised alarm among Brazilian investors.

Doubts about the fiscal deficit have raised alarm among Brazilian investors.

The disagreements between Lula and the Central Bank

In his latest criticism of Central Bank chief Roberto Campos Neto, a public confrontation that many cite as one of the reasons for the weakness of the currency,l, Lula said that the Brazilian monetary authority cannot be led by someone with political bias.

Lula and his allies have long viewed Campos Neto as a political rival, arguing he was appointed by far-right former President Jair Bolsonaro and blaming him for high interest rates in the country.

Campos Neto’s term ends at the end of this year and Lula will name his successor.

Source: Ambito

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