MercoPress, en Español

Montevideo, November 16th 2018 - 04:01 UTC

Rousseff eyeing foreign reserves to boost economy and cash strapped government

Saturday, January 23rd 2016 - 09:01 UTC
Full article 22 comments
In an interview with the online news service UOL, Rousseff said she was neither for nor against using Brazil's international reserves, which total about $370 billion. In an interview with the online news service UOL, Rousseff said she was neither for nor against using Brazil's international reserves, which total about $370 billion.
“It's not sacred. There are moments in which that could become an option to be considered” said the Brazilian president  “It's not sacred. There are moments in which that could become an option to be considered” said the Brazilian president

President Dilma Rousseff said on Friday that her cash-strapped government could consider tapping into Brazil's sizeable foreign reserves at a given moment, an idea that troubles investors already worried about the country's economic decline.

 In an interview with the online news service UOL, Rousseff said she was neither for nor against using Brazil's international reserves, which total about $370 billion.

But she added: “It's not sacred. There are moments in which that could become an option to be considered.”

Her comment appeared to be a change of stance for Rousseff, who recently told reporters that the use of the reserves was not being considered by her government.

Most in her economic team share that view, but with Brazil in its worst recession in decades and with a growing fiscal deficit to boot, Rousseff is under pressure from her leftist Workers' Party to ditch austerity and spend more, including some of the international reserves.

Economists warn that would stoke already high inflation, weaken Brazil's currency further and create greater uncertainty for investors following the loss of Brazil's investment-grade credit rating in December.

The Real recovered slightly on Friday to 4.10 to the dollar from 4.16 on Thursday, its lowest closing level since the currency was created in 1994.

Categories: Economy, Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • L0B0MAL

    Want to boost the economy - REALLY?

    Then just make sure that the STOLEN Billions are returned by the corrupt politicians / officials and the problem gets solved!

    Jan 23rd, 2016 - 10:53 am 0
  • Brasileiro

    At least Bad Wolf correctly write your own name in Portuguese!

    Excellent news. Besides all we get a little farther from the West.

    https://www.youtube.com/watch?v=Cj_mW22ioZo&index=2&list=FLmXPTu1f8AdGlizWNiASx2A

    Jan 23rd, 2016 - 12:14 pm 0
  • yankeeboy

    Just like Venezuela and Argentina.

    Told ya the Marxist Monkeys would go back to what they know.
    Stealing and squandering built up wealth.

    They're doomed.

    Jan 23rd, 2016 - 12:41 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!