Brazil Real Falls as Ministers' Dispute Fuels Political Tension
- Levy, Barbosa reported to disagree over next year's budget
- Politican tension extends currency's weekly decline to 2.7%
Brazil’s real declined amid speculation that tension between Finance Minister Joaquim Levy and Planning Minister Nelson Barbosa over fiscal policy is heating up again, adding another hurdle to passing measures needed to shore up the budget and restore growth.
Levy is seeking a target of 0.7 percent of gross domestic product for the budget surplus before interest payments next year to restore credibility and avoid further credit-rating downgrades, a Valor Economico newspaper columnist reported Friday. Barbosa wants to lower the target to between zero and 0.7 percent, the columnist said. The dispute comes as Congress is already locked in a political stalemate amid efforts to impeach President Dilma Rousseff and as the lower-house leader faces allegations of corruption.