Deputy wants to invite Campos Neto to talk about common currency and interest rates – 07/10/2023 – Panel

Deputy Paulo Alexandre Barbosa (PSDB-SP) wants to invite the president of the Central Bank, Roberto Campos Neto, to speak at a public hearing in the Chamber on the consequences of the eventual adoption of a common currency between Brazil and Argentina.

He also wants Campos Neto to talk about the Central Bank’s monetary policy, which has been criticized by the government and economists.

Regarding the controversy involving the common currency, Barbosa cites statements by President Luiz Inácio Lula da Silva and the Argentine head of state, Alberto Fernández, in defense of the measure. The common currency would be used in regional trade and would not eliminate each country’s currencies.

“The objective fact is that the willingness of the representatives of Brazil and Argentina to move forward with the proposal for the creation of a common currency has generated turmoil in the economic debate and brought many concerns to the national productive sector”, he argues.

As for the basic Selic rate, the deputy says it is necessary to “debate the negative effects of adopting a high interest rate in attracting foreign investment to the national productive sector.”

“Experts are unanimous in pointing to the basic interest rate at 13.75%, the highest level in the last six years, as being one of the obstacles to foreign investment in Brazil, which motivates us to seek clarification regarding this sensitive interest x ratio attracting foreign investment.”

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