President of Brazil’s Central Bank warns economic reforms still necessary

At the opening ceremony of the Spanish Chamber of Commerce in Sao Paulo, Ilan Goldfajn touted the economic policies carried out since late 2016, but warned reforms were still needed.

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brazilian economy

Sao Paulo, Feb 26 (EFE).— Reduced inflation, a drop in interest rates and economic recovery, in general, were the key positive elements of the Brazilian economy last year, according to the president of country’s Central Bank.

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At the opening ceremony of the Spanish Chamber of Commerce in Sao Paulo, Ilan Goldfajn touted the economic policies carried out since late 2016, while noting the importance of maintaining “the reforms and economic adjustments in order to continue growing Brazil’s economy.”
“We must continue the policy of adjustments and reforms if we want to keep lowering inflation and in that way, solidify the progress we’re starting to see in this country,” the Central Bank president said.

Named the best head of a central bank in the world in 2018 by the UK magazine The Banker, Goldfajn described the international scene as “benign,” as is evident in the economic recovery going on “in almost all the countries of the world,” like the United States, Spain, Portugal, Germany and Japan.

“The international scene is benign, but risks remain. We must take advantage of the moment to avoid the frustration of our expectations,” he said with regard to the controversial economic reforms proposed by Brazil’s government last year.

Goldfajn said that, in case the reforms are not approved, the situation abroad could get hostile, and the combination of the two things could leave the South American nation “vulnerable” and in a situation “much worse than it is now.”

The Central Bank president went into the actions being taken by the Central Bank to continue the South American country’s economic recovery, such as efforts to gain the bank’s autonomy, modernized legislation and the lowering of interest rates.

Goldfajn also noted the efforts of the Central Bank to stimulate the use of electronic devices like credit cards for financial transactions rather than cash, since this is, he believes, the most “practical” and “efficient” way to deal with criminal activities such as money laundering.

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