Tombini: Dollar appreciation has little impact on inflation.
The Central Bank president says that currency devaluation is a global movement comparable to several developing countries and that prices in Brazil are less susceptible to exchange rate fluctuations; however, he did not rule out further interventions by the institution to control excessive volatility.
247 The president of the Central Bank, Alexandre Tombini, does not seem concerned about the appreciation of the dollar, which reached its highest level in four years last Friday, May 31st.
"The rise in the dollar is a global movement, not a specific issue for Brazil. The increase seen in Brazil is similar and comparable to the movement recorded in other countries," said Tombini this Sunday, June 2nd, after participating in a seminar organized by the Central Bank of Türkiye.
Regarding the impact of the rise in Brazilian inflation, Tombini remained calm. "The pass-through of the dollar's appreciation to the Brazilian economy is limited and has decreased over time," he said. The president of the Central Bank declined to comment on the price increases that are beginning to be seen in some sectors of the economy, such as electronic devices – a segment with a high percentage of imported parts.
He did not rule out, however, further interventions by the Central Bank. "If there is excessive volatility and the market is dysfunctional, the Central Bank will act," he said.
Last Friday, the institution carried out an operation equivalent to selling dollars in the futures market, but the strategy did not prevent the currency from rising to R$ 2,147. The dollar futures contract for July closed Friday at R$ 2,155.