Augustin expresses satisfaction with the rise of the dollar against the real.
The National Treasury Secretary says the move is in line with what the Treasury wants.
Brazil's National Treasury Secretary, Arno Augustin, expressed satisfaction today with the rise of the dollar against the real. "This devaluation of the real is in line with what we consider appropriate," said Augustin in a brief interview after participating in a closed meeting with members of the Finance and Taxation Committee of the Chamber of Deputies. The secretary noted that the government has always been concerned about excessive currency appreciation.
Despite the assessment regarding the rise in the dollar, the secretary argued that the government is very concerned about the international situation and continues to monitor the global context. "We should not underestimate the effects of this." Augustin stated that, so far, the Brazilian economy may weather the international crisis without major setbacks.
He also admitted the possibility of the Brazilian government issuing new debt securities on the international market in the coming weeks. According to him, the Brazilian government is evaluating whether the issuance will be through a dollar-denominated or real-denominated bond. "An external issuance is indeed possible," said Augustin. The secretary added that the issuance remains "on the agenda" and said that, despite the volatility of the international market, the fundamentals of the Brazilian economy are extraordinary.
Augustin declined to comment on the possibility of Brazil's Sovereign Wealth Fund being used by the government in the strategy being negotiated with the BRICS (Brazil, Russia, India and China) to help European nations facing financial difficulties. "I don't think it's appropriate for me to comment at this time," he said, citing that several paths are being studied and that it would be premature to make any considerations at this moment.
The secretary also commented that the central government's primary result in August will be positive, but not as strong as in July. The central government (National Treasury, Social Security and Central Bank) recorded a primary surplus of R$ 11,184 billion in July.