SAO PAULO, April 17 (Reuters) – Brazil’s Treasury Secretary said in an interview with newspaper Valor Economico that all of the country’s financial institutions and “all society” need to understand the importance of balancing public accounts to avoid fiscal setbacks.
The remarks come after Brazil on Monday changed its fiscal target to a zero primary deficit for 2025, in a reduction of the previously announced fiscal effort, which predicted a surplus of 0.5% of the Gross Domestic Product (GDP) over the next year.
Financial markets reacted negatively, with the Brazilian real reaching its lowest level against the US dollar in more than a year on Tuesday.
In the interview, which was fully published on Wednesday, Rogerio Ceron attributed the worsening in Tuesday’s markets mainly to external turbulence, but said the change in the government’s fiscal target for 2025 had a negative impact on variables such as the exchange rate.
(Reporting by Steven Grattan; Editing by Chizu Nomiyama)
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