Currency measures adopted by the Brazilian government will attract long-term investors and reduce volatility, Deputy Treasury Secretary Paulo Valle said.
“When doing these measures we guarantee less volatility,” Valle said on a conference call today. “It’s better for investors to see a stable currency in coming years, compared to a scenario” of higher currency volatility.
Brazil’s real has slipped 0.4 percent this year to 1.6680 at 11:00 a.m. New York time, after surging 33 percent in 2010.
Since October, Brazil has tripled a tax on capital inflows, implemented reserve requirements on short dollar positions to discourage bets against the dollar and entered the derivatives market to bet against the real in an effort to temper gains in the currency.