President of the BC reinforced that the US scenario does not have a mechanical relationship with Brazil, but that it is necessary to assess how this will have an impact on the country
The president of the Central Bank, Roberto Campos Neto, said, referring to the interest rate scenario in the United States, that it is difficult to determine the trend for the dollar in the coming months.
“There is no mechanical relationship between currency and interest differential. But with stronger interest rates [nos EUA] for longer, the tendency is for the dollar to become stronger”, he said, during a speech at the Scenario and Perspectives for Brazil event, promoted by the Young Presidents Organization (YPO).
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Campos Neto reinforced that the United States scenario does not have a mechanical relationship with Brazil, but that it is necessary to assess how this will have an impact on the country.
He cited as an example how the real could become more devalued and the cost of credit due to higher US interest rates. It is the spillover of high interest rates in the United States that attracts attention, according to the president of the BC.
“What we can say is that uncertainty has increased,” said Campos Neto.
He once again mentioned the convergence of inflation and the heated job market in the United States and also the geopolitical scenario, with conflicts involving Israel and Ukraine affecting energy prices. This entire scenario will make the work of Central Banks around the world more difficult from now on, according to him.
Asked about the possibility of a new global currency, he said that a lot of time is spent discussing the viability of a new dominance when technology has already overcome this and allows operations with instant and efficient currency conversions.
“I believe more that technology will overcome this trade zone debate, so to speak. We are technologically very close to integrating systems”, commented the BC president.
With information from Estadão Content
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