Strong dollar affects not only Brazil, says Levy
Finance minister Joaquim Levy 
Finance minister Joaquim Levy announced today (Sep. 23) that the current dollar rise, surpassing R$4, is part of a wider movement around the world and is not just a problem in Brazil. For him, the country goes through a recovery process, adopting several measures, and some of the dollar's currency impacts on the domestic market are a result of effects that were being cushioned.
"I believe we will achieve greater stability in dollar as well. It's difficult, [rather] impossible to determine the level, but I'm sure that the high levels of volatility will also fade as soon as some issues, like the voting of presidential vetoes and of the budget itself, are adequately addressed. These are the elements that will allow us even to bear the fruits of what has been done. This is the growth strategy and that's what we have to hold ourselves onto, with fiscal responsibility and clarity on spending," he said.
The minister spoke to reporters on Wednesday (Sep. 23) after attending the Legal Security and Infrastructure Forum at the headquarters of the Brazil's Bar Association (OAB) in Brasília. He also commented the meeting with representatives of the agency Fitch Ratings on Tuesday (Sep. 22), in Brasília. Levy reported that Fitch's employees left the meeting convinced that the Brazilian government is committed to fiscal stability. "Obviously, while we do not restore fiscal soundness, everything becomes more difficult. But I'm convinced that we will achieve it," he noted.
When asked about a possible downgrade in Brazil's investment score by Fitch, the minister denied a change in Brazil's credit ratings. "The measures are producing effects. Some positive results are being held back by circumstances that give rise to uncertainties. This has restricted our investment capacity and even our tax collection capacity. But I'm convinced that eliminating these uncertainties, the economic resilience will be fast recovered," he declared.
In April, Fitch maintained Brazil's credit score as BBB, but revised the country's outlook from stable to negative. The other credit rating agency Standard & Poor's reduced Brazil's credit score from BBB- to BB +, with a negative outlook (Sep. 9).
About the Congress decision to use Rousseff's presidential vetoes to bills that would increase government's spending, the minister said that the congressmen have shown maturity and avoided creating new taxes, a burden to taxpayers.
Were they overridden, the vetoes would cause a rise of $5.8 billion in government's spending next year, according to estimates of Planning Ministry.
Translated by Amarílis Anchieta
Fonte: Strong dollar affects not only Brazil, says Levy
