The director of Monetary Policy at the Central Bank, Gabriel Galípolo, reinforced this Friday (29) that the authority does not defend a level for the exchange rate and that it only intervenes in the market in the case of dysfunctionalities.
During an event promoted by the Brazilian Federation of Banks (Febraban), in São Paulo, Galípolo was asked about possible BC interventions in the market, considering the movement of the dollar in recent days.
“We always explain that the BC acts on the exchange rate due to dysfunctionalities”, stated Galípolo at the beginning of his response. He then added that on the way to the event he spoke with the current president of the BC, Roberto Campos Neto, about the subject.
“I was exchanging ideas in the car with Roberto about the topic,” said Galípolo, without delving deeper into the issue.
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At the event, Galípolo also mentioned that the exchange rate is floating, which is “important to absorb shocks”.
Since Wednesday, the Brazilian exchange market has been facing strong pressure, amid the market’s negative assessment of the spending cuts package announced by the Lula government. In this Friday’s session, the spot dollar was quoted at R$ 6.11 — a historic record.
Current director of Monetary Policy, Galípolo will assume the presidency of the BC in January, replacing Campos Neto.
