DAVOS 2013: Brazil exchange rate still too high for comfort
Friday, January 25, 2013 - 04:51
Jan. 25 - The Brazilian Development Bank President Luciano Coutinho tells Davos Today that the Real is still overvalued, making life difficult for the country's exporters.
▲ Hide Transcript
▶ View Transcript
About flagging growth weak investment amounts worries over inflation. Not -- -- UK yet or Euro zone's struggle of a supposed stop Brazil Luciano Cupertino is president of the Brazilian venom bank and joins us. Very nice to have you as a is a -- Brazil a thing of the past. No we are. Very bullish would do this year. Our back which is very important for. Financing. Capital formation and investment and presume. Real zoo opening. In recent months the so last year he sewerage and consultation with the bank shall we we have you February -- course. -- for you right now and we'll follow 250 billion in consultation for investment. But the way with emphasis in infrastructure. The end we'll talk about infrastructure could be this seems to be the perception the output from outside is that things are slowing what is being done. To address that perception. I think the perception is already changed in Cyprus -- mean to perception now is. Overall. Expectations that the economy will grow. Do discussion. Is -- will grow three or four or five so. The perception has already changed. So it was Brazil that first warned about some time ago this notion of currency -- and danger that that that was sort of -- coming threat in the global economy. How concerned are you about that now. Well I think. The procedure -- rate has she to some extent -- to last year. And it's I wouldn't say so comfortable for competitiveness but it is. Substantially. In a better position now relative to what it's stage. Mean. The late 2011. So we -- we I think we. We -- back to partners say so you're participating in the currency -- that's okay. -- -- But I mean as a development back or art but I've I've I've must -- competitiveness. Then of course competitiveness is key for. Do inducement to contrast G incentive there fast and what are we seeing now that's. -- -- The reduction of interest. Know last year was a very important year in the quarter TH of two rooms because we had -- substantial reduction in interest rates. And we had any interest in correction. Or do you excessive appreciation of all currency -- think do you -- act or do -- correction where. Being felt indeed indeed -- What are the things which is so interesting about what's been happening. In Brazil to the rest of the world is the way that Brazil's big boom has been an inclusive them. And it has really been driven by. A focus on the people at the bottom and on bringing them up which hasn't necessarily -- the shape of economic growth around the world. For still panic and do you think other countries can learn something from the pursuing an approach well I think. To Brazilian government has. It clear focus in pursuing a policy of income trust first to -- jury war. And also addressing. The basic focus groups particularly the education and trying to enhanced conditions for for for poor people. In I should add to it last year for instance if it GDP didn't grow much hope we ever. Real income -- the bottom of society to grew by 5% in real terms. Consumption kept growing and formal employment. Get a top. Who knew. A million people in formal drops so. Which is a sign of confidence -- of business community that the economy. Will keep -- growing or otherwise. Well the political consensus for those income transfers which is a nice way of saying redistribution. To the people at the bottom and other countries their huge fight so predicts. I think deep understanding that these results. In a policy -- -- dynamic domestic market. Which is good for business. In -- it's good for society. And it has created PP if you weren't feeling in just society as a whole that has created to hold. A state trojans I think this is CD. -- I -- -- I promise and also rent destruction we're gonna have to save that for some next time we speak I've got to finish the interview. Thank you so much -- after coming and talking with us today Luciano who can you know. From Brazil.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code