Brazil real not overvalued, IMF's Fischer says
Reuters, Tuesday, November 17, 1998 at 11:41
NEW YORK, Nov 17 (Reuters) - Stanley Fischer, first deputy
managing director of the International Monetary Fund (IMF),
said on Tuesday he did not believe the Brazilian real was
overvalued.
"By historical standards, the Brazilian exchange rate is
not by any stretch of the imagination overvalued by the levels
indicated in newspapers," Fischer said.
He was speaking by teleconference to an audience at a
meeting organized by Brazil to explain the country's current
agreement with the IMF to investors. The meeting was also
addressed by Brazilian Finance Minister Pedro Malan.
Fischer added the Brazilian real is not overvalued in terms
of unit labor costs.
"The exchange rate issue is greatly overplayed in the press
and by my former academic colleagues," he said. "It is a
critical point, that's why I bring it up."
Fischer added he expected interest rates to decline in the
near term. "We assume interest rates to come down slowly to
below 20 percent by the end-of-year."
He said projections are "not based on overly optimistic
assumptions."
On the fiscal reform package, he said, "I expect this
government to deliver."
Copyright 1998, Reuters News Service |
