Brazil’s Lula says he doesn’t want to touch money from foreign currency reserves
SAO PAULO (Reuters) -Brazil’s presidential frontrunner Luiz Inacio Lula da Silva, who led Latin America’s largest financial system from 2003 to 2010 and is now in search of a comeback, on Wednesday stated he wouldn’t look to the touch cash from the nation’s international trade reserves if elected.
The so-called worldwide reserves, at the moment standing at $343.5 billion, are seen as an essential instrument for the central financial institution to strengthen the native forex, and Lula’s remarks got here as a few of his aides advocate for a extra aggressive international trade coverage.
Reuters reported final week that financial advisors to Lula had been drafting a plan that would come with extra market interventions.
One in every of his high aides, Pedro Rossi, stated the central financial institution was failing to make full use of its devices, together with forex swaps, to right intervals of extreme forex devaluation. He added that Lula might embrace extra regulatory instruments.
Lula in an interview with information web site UOL on Wednesday additionally stated that Brazil wouldn’t want a spending ceiling if he had been to win a brand new time period.
“I do not want a spending cap. A spending cap laws is one thing you do when you find yourself irresponsible,” the leftist chief stated. “I do know I can’t spend greater than I’ve”.
Lula leads incumbent right-wing President Jair Bolsonaro in opinion polls forward of the Oct. 2 election.
(Reporting by Eduardo Simoes; Writing by Gabriel Araujo; Enhancing by Anthony Esposito and Mark Porter)
