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No one should worry about the high value of the dollar, says Paulo Guedees economics



Economy Minister Paulo Guedees said on Friday that there is no reason to worry about the recent financial turmoil. In recent days, investors have been concerned about the government's ability to tackle the reform agenda, especially with fiscal measures.

This Friday the dollar reached a value of R $ 4.1122, a higher daily domestic quote from September 20 last year. The stock market is already under 90,000.

"If the stock market falls or the dollar rises slightly, it's impossible, no one should worry," said Guedees at an event in Rio de Janeiro. "It has a stronger, constructive and positive dynamics (built in the Brazilian economy)."

Economy Minister Paulo Guedees defends pension reform in committee in Parliament - Photo: Fabio Rodrigues Pozzebom / Agência BrasilEconomy Minister Paulo Guedees defends pension reform in committee in Parliament - Photo: Fabio Rodrigues Pozzebom / Agência Brasil

Economy Minister Paulo Guedees defends pension reform in committee in Parliament – Photo: Fabio Rodrigues Pozzebom / Agência Brasil

Investors mainly observe the political capacity of the administration of Jair Bolsonaro to approve the reform of social security in Congress, which will lead to a stable economy. Considered to be fundamental to the settlement of public accounts, the reform proposal presented by the economic team predicts a fiscal impact of $ 1.2 trillion in 10 years.

"If we reform the $ 1 trillion, we have the potential to launch the capitalization system," Guedees said. "In my relationship with Congress, I saw a lot of sensitivity to the problem.

With possible approval of social security, the minister also believes that expectations for the Brazilian economy will improve from the second half. On Tuesday, at a public hearing in the Commission on a joint budget, Güdeses said the country's economy is at the bottom of the pit and has reduced its economic growth forecast this year from 2% to 1.5%.

"Growth is not falling, and growth expectations are high," Guedes said on Friday.

In the first quarter, the economic activity index (IBC-Br) issued by the Central Bank shows that in the first quarter the Brazilian economy declined by 0.68%. With the unveiling of the year, banks and consultancy firms have cut expectations for the economy this year and forecast a growth of nearly 1%.

"After two, three, four months we will have virtuous results and expectations will be more favorable."


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