Guedes: exchange rate should improve with vaccination and private investments

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The Minister of Economy, Paulo Guedes, believes that the exchange rate should return to a “better” level in the next two years, with the recovery of the economy. In an interview with Spanish newspapers The world e Expansion, aired this Friday, 19, he defended that the path goes through mass vaccination and incentives to private investments.

“What we hope, within the next two years, is to vaccinate massively in Brazil, the recovery of the economy, no longer based on public spending that cannot be maintained, but rather to stimulate growth with private investments,” said the minister. According to him, the country “should return to a better exchange rate” after that. “We are going to vaccinate for the return to work and resume sustainable growth and reforms”, he reinforced.

The minister said, however, that the country has not yet vaccinated enough. “With the return of the pandemic intensely, we are vaccinating massively to try to mitigate this problem. 5% of the population has already been vaccinated. But it is very little, we have to improve a lot, work a lot”, he acknowledged. “In the next six months, we have to vaccinate as much of the Brazilian population as possible, and this is our main objective,” he said.

Guedes said that Brazil has been talking to laboratories to try to speed up vaccination and mentioned the recent contracting of 100 million doses of the Pfizer immunizer, totaling more than 500 million doses scheduled for this year. “We are accelerating our contracts to advance the delivery of these vaccines,” he said.

According to Guedes, the current exchange rate is the result of the shock of the pandemic and the center-left, which, in his view, undermines Brazil’s image. “It is much more the result of the pandemic and a little bit of the internal political problem, because after 30 years of center-left hegemony, those who lost the elections are not in agreement with this, and sell a negative image of the country abroad” , he stated.

The minister pointed out measures taken in recent months to unlock investments, such as the regulatory frameworks approved by Congress, the fiscal adjustment proposed in the Emergency PEC and the autonomy of the Central Bank. “Brazil is the largest investment frontier available in the world,” he said. Guedes also mentioned that the cabotage framework, currently underway in the Senate, should “increase competitiveness and reduce logistics costs”.