The president said he had nothing to do against the president of the Central Bank, Roberto Campos Neto, but said he acts with a “political bias”
The president Luiz Inácio Lula da Silva (PT) said this Tuesday (2.Jul.2024) that Brazil is the victim of a speculative game against the real. In an interview with Rádio Sociedade de Salvador (BA), the PT member stated that he is studying measures to contain the rise of the US currency and once again criticized the president of central bankRoberto Campos Neto, saying that there is political bias in his decisions.
“Obviously, I am concerned about this rise in the dollar, it is speculation. There is a game of speculative interest against the real in this country. And I have been talking to people about what we are going to do.”he declared.
The real continued to depreciate in July against the currencies of countries considered developed. The dollar rose 1.15% to R$5.65 on Monday (July 1), highest value since January 10, 2022when it was R$5.67. The euro closed the day at R$6.07, up 1.43%. It was the highest value for the European currency since January 26, 2022 (R$ 6.12).
Lula downplayed the responsibility of his latest criticism of the Central Bank’s monetary policy on the exchange rate. He said that his interview with UOL, when he questioned the need to cut spending, did not influence the rise of the dollar. Poder360 showed that the US currency increased its appreciation during the interview.
When the interview began, at 9:20 a.m., the dollar was quoted at R$5.476. At the end of the PT member’s speech, at 10:30 a.m., the currency had risen 0.77% compared to the quote at the beginning of the interview: it went from R$ 5,476 for R$ 5,519. Lula’s questions about the need to cut spending impacted the fluctuation.
“I’m coming back on Wednesday, I’m going to have a meeting because what’s happening isn’t normal. [alta do dólar] and I think that my vision about the Central Bank is not a theoretical vision, it is a vision of a president who was already president and had the Central Bank under my control for 8 years, with total autonomy”he said.
The PT member, however, softened his speech about spending cuts. He stated that he would not make cuts for the poorest, but that if there were excessive spending, he would cut.
“You [Haddad] “If there is excess spending, if someone is spending something that is not necessary, if they are misusing money, we stop. Because I am not going to throw money away either.”he said.
Neto Fields
The president once again criticized the head of the monetary authority, whose term of office runs until December 31, 2024. According to Lula, Campos Neto has a political bias.
“Now, what is not acceptable is for someone to run the Central Bank with a political bias. I definitely think he has a political bias, but look, I can’t do anything. He is the president of the Central Bank, he has a mandate, he was elected by the Senate. I have to wait for the end of his term and appoint someone.”he declared.
Lula also stated that there is no need for a law to grant autonomy to the Central Bank if the president is a Democrat. He also said that the Central Bank is public and cannot serve the interests of the market.
“I think we need to keep the Central Bank functioning properly, with autonomy, so that the president of the Central Bank is not vulnerable to political pressure. And if you are a democratic president, you allow this to happen without any problem. Now, when you are authoritarian, you decide to let the market take over an institution that should belong to the State.”he stated.
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