“Brazil’s currency rebounded from record intraday lows on Friday after congressional leaders said they would suspend state income tax reform.”, — write: epravda.com.ua
Brazil’s currency rebounded from record intraday lows on Friday after congressional leaders said they would suspend state income tax reform. This is reported by Reuters. Brazil’s Finance Minister Fernando Haddad emphasized that the fiscal obligations go beyond the scope of the new package of cost reductions. “We can’t do everything we need to do with a silver bullet. This set of measures is not an exhaustive list of what we need to do,” Minister Fernando Haddad said at an event organized by banking lobby group Febraban. Advertisement: Later, in an interview with Record TV, he said the government could resume discussing new fiscal measures in two to three months, if needed.Advertisement: Investors have doubts about the scope and effectiveness of the measures presented by the administration of President Luiz Inacio Lula da Silva on this weeks to slow spending to maintain the fiscal base adopted last year. Brazil’s gross public debt rose to 78.6% of gross domestic product in October from 78.2% in September, and economists say it could reach 91% by 2030, adding to market skepticism about the structure’s ability to stabilize the situation. The Brazilian real, which weakened to a record low of 6.11 per dollar after a two-day sell-off, pared losses and ended the session slightly lower, but still set a new record close at 6 per dollar.
