The high volume of international reserves and the few dollar-denominated debts make Brazil prepared to face the volatility of the financial markets due to the conflict between Russia and Ukraine, said today (24) the Secretary of the National Treasury, Paulo Valle. According to the secretary, it is still too early to think about extraordinary public debt auctions to hold the market.
In the late afternoon of this Thursday, the stock market was down about 1.5%, after retreating more than 2% during the day. The commercial dollar, which yesterday (23) had closed at R$5, was being sold at R$5.10, after reaching R$5.15 around 3pm.
“It is important to remember the position in which Brazil finds itself. In terms of public debt, we are in a very comfortable situation. We only have 5% of the debt in external debt and the foreign participation [na dívida interna] in Brazil it is just over 10%. We have 100% of the 2022 financing needs in cash. We have more than US$ 350 billion in international reserves. Brazil is well structured for some international volatility,” said Valle.
As for possible auctions of the public debt mattress, a type of measure taken in moments of extreme turmoil in the financial market, the secretary commented that the Treasury will only be able to make any decision after waiting for how the conflict will unfold and if there will be impacts in other countries. .
“The Treasury has a comfortable cash position. We follow the market permanently. We are attentive and will take the necessary measures. But, at this point, I think it’s early and that we are well positioned”, said Valle.
The secretary explained the explanations when commenting on the primary result for January. Last month, central government accounts had a record primary surplus of R$76.5 billion.
