- Analytics
- News and Tools
- Market News
- USD/BRL: Brazil’s President interfering monetary policy, additional downside pressure for Real – Commerzbank
USD/BRL: Brazil’s President interfering monetary policy, additional downside pressure for Real – Commerzbank
Further comments by President Lula da Silva, which could have been seen as interference in monetary policy, are likely to have put additional downside pressure on BRL, according to economists at Commerzbank.
Recent developments in Brazil are causing some concern
“Lula yesterday confirmed his view that current key rate levels of 13.75% are too high. In his view, this is not justified, and he called on companies to complain about excessive financing costs.”
“If doubts were to arise about the autonomy of the central bank while the government also pursues an expansionary fiscal policy that would not be good news for BRL. That is why recent developments in Brazil are causing some concern.”
“We can only hope that Lula will backpaddle again. If he was to keep flogging the same horse, then BRL might come under further depreciation pressure.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
