Minister Says There Is No Timeline to Cut Spending in Brazil, and Dollar Closes at R$ 5.76 – 30/10/2024 – Business
The dollar closed sharply up 0.95% on Tuesday (29), at R$ 5.762, amid market concerns over Brazil’s public finances, also influenced by the statement from Minister Fernando Haddad (Finance) that there is no timeline for announcing government spending containment measures.
Additionally, U.S. employment data strengthened the dollar globally. This is the highest exchange rate for the American currency since March 29, 2021, when it closed at R$ 5.767. At its peak on Tuesday, it reached R$ 5.766. The Brazilian currency was the most devalued on Tuesday compared to the main currencies worldwide.
On Tuesday evening, amid market discomfort with the statement, the Minister attended a meeting with Lula at the Alvorada Palace, a gathering that was not on the authorities’ agenda. Also present were the future Central Bank President, Gabriel Galípolo, who was the former second-in-command at the Ministry of Finance, as well as Dario Durigan and Guilherme Mello, current secretaries of the ministry. According to Folha‘s findings, the meeting aimed to discuss the fiscal package, as did the meeting held on Monday (28). The gathering responded to market pressure and intends to serve as another round to sensitize the president about the necessary speed for sending the measures.
