[ad_1]
The President of the Central Bank, Ilan Goldfajn, reiterated Thursday (5) in an interview with GloboNews that the goal of the monetary authority is to ensure the smooth functioning of the foreign exchange market without trying to define the price of the dollar.
Asked when BCB could sell new swaps, Ilan said "we have to make sure the exchange rate is stable," he said in an interview. granted to the journalist Miriam Leitão. when there is no liquidity, functionality, when there is a feeling of panic. "
" This is not the price issue, whether it is down or up, "said the president of the Central Bank." But the perception that there was a change in very fast vision and that the market did not have the capacity to adapt to that. "
" We will offer tranquility for badet prices to reflect the Brazilian reality. "According to him, the # British Columbia's goal is "to avoid excesses, to avoid malfunctions, to avoid periods of illiquidity."
"It must be taken into account that what determines the values of Brazilian badets, it is our ability to continue reforms, adjustments, continue in the tax liabilities, "he said. "It will continue to keep inflation low, the recovery of the economy, that is what will make the difference."
In his opinion, a possible rise in interest rates would only be justified if the dollar shock and current inflationary pressures contaminate the market. To the question of whether the Central Bank would consider raising interest rates if the external shock, which led to the rising dollar, hit inflation, he responded positively.
: "Yes, at the present time, this shock is hitting inflation, expectations, inflation at the relevant horizon for l & rsquo; Future, "answered Ilan. He made it clear that he was referring to the "inflation forecast" for 2019, for 2020, looking further. "
"Let's look at the temporary increase in inflation and see if there is a perennial element," he said, repeating what British Columbia had already pointed out in his papers last week. "We will examine this inflation to see if there is a more permanent impact of this shock, which is certainly temporary."
Ilan said that the monthly inflation index for June is expected to be higher due to temporary shocks that have affected the economy in the near term, such as the truckers strike.
"There was a strike that will raise inflation in June, we will soon have this data," he said. "We also have the impact of what is happening in the external shock, the international scenario has changed, there are problems related to reforms and adjustments in the future."
Ilan also justified the definition of an inflation target of 3.75% per annum by the National Monetary Council (NMC) for 2021, stating that by that time the government was not going to be able to do anything. Objective is apart from short-term cyclical fluctuations and may reflect the fundamentals of the economy.
Poster
The President of the Central Bank also baderted that there was no cartel exchange in Brazil, with reference to the fact that the exporting companies sue for alleged losses because of the so-called cartel of exchange
"No, there is none, taken at Cade", he added, referring to the Council Administrative Council for Economic Defense (Cade). "Cade touches on that, I think that there was no major influence on the exchange rate, but I think Cade will make a statement on it."
Bank Spreads
The President of the Central Bank also denied that the institution adopted the banks' agenda in the debate over the high interest and the bank spread in the country. According to him, the Central Bank has taken steps to increase competition in the region.
"We said we need to focus on competition," he said. , presented in the Bank Economy Report, with the points defended by badociations representing banks. According to her, the focus was less on the concentration of banks and more on topics on the agenda of banks, as measures to reduce delinquency.
Ilan replied that the OC had taken steps to increase competition. a regulatory environment that encourages small and medium-sized banks and the creation of financial technologies
"In fact, spreads have indeed declined," he said. "He falls, we would like him to fall faster."
He said that the points raised by the banking system are also true, such as those related to the high "cost of Brazil". "We have to work with the competition, but there are also several components of the" cost of Brazil "that affect not only the banking sector, but the economy as a whole," he said.
Public debt
Ilan also said that "this is not the way" to solve the country's tax problem the imposition of any limit for the payment of interest on the public debt. His answer was given when he was asked for proposals of candidates to the President of the Republic to impose limits on interest-bearing debt expenditure.
"I believe that our future vision of fiscal responsibility, the ability to put public accounts in order in the future, is critical," said Mr. Ilan. "This will give you peace of mind, it will give you the opportunity to have a smaller interest."
Ilan said that "we are all holders of public debt." "We all invest in funds, in Treasury Direct, and we will all benefit from less interest over time."
[ad_2]
Source link
