‘Dollar should have gone down, but political noise doesn’t allow it,’ says Guedes

The Minister of Economy, Paulo Guedes, admitted that the political noise in Brazil, amplified by the tension between the powers of the Republic in recent weeks, does not let the value of the dollar fall.

According to him, the equilibrium value of the exchange would be from R$ 3.80 to R$ 4.20, if “everything was right”.

However, the current level is considerably above this value: on Tuesday, the US currency closed with a high of 0.65%, at R$ 5,257 on sale.

“This dollar was supposed to be going down, but the political noise doesn’t allow it. But there’s no problem, more time is better for exports”, he commented in his participation in Macro Day 2021, an event promoted by BTG Pactual bank.

Even so, the minister affirms that, if the direction of economic policy follows the current direction, the “right thing” will be done and, soon, the exchange rate should retreat.

Economy

Despite having reinforced the ‘V’ resumption of economic activity, the minister admitted that this does not mean that the growth rate will continue at an advanced pace.

“Returning in a V is leaving the rock bottom and coming back, it doesn’t mean that the growth rate will remain high. Growth rate is another challenge”, he pondered.

Even so, the minister insisted that investments are already taking place at an initial stage and will accelerate. “Obviously, everything would be much faster and Brazil would already be growing if we had entered with an aligned parliamentary base. […] Now, people talk as if there was no Covid in Brazil. It really was a disaster, but Brazil fell less than the advanced economies and is recovering”, he argued.