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Brazilian minister plays down fall of real against dollar

Xinhua, July 28, 2015 Adjust font size:

Brazil's Planning Minister Nelson Barbosa on Monday sought to minimize the impact of recent fluctuations in the exchange rate between the Brazilian real and the U.S. dollar.

The dollar gained against the real by almost five percent last week alone, after the Brazilian government announced further budget cuts and a sharp reduction in its primary surplus target for 2015.

According to Barbosa, the exchange rate will stabilize and the real will gain value against the dollar in 2016. "The markets are doing what markets do. They fluctuate when faced with new information, not only in Brazil, but in the rest of the world as well," he said at a press conference in Brasilia.

"We are confident that the markets will adjust to this new scenario and that the exchange rate will stabilize," he added. In addition, Barbosa revealed that the government does not intend to use its extensive foreign exchange reserves to influence the exchange rate. The Brazilian government's Forex reserves currently amount to over 360 billion U.S. dollars. Endite