Brazil FX weakness a natural consequence of lower rates – Economy Minister Guedes

BRASILIA, Feb 20 (Reuters) – Brazil’s Economy Minister Paulo Guedes said on Thursday that a weaker domestic currency is to be expected given that interest rates have come down so much, stressing that the real is a floating exchange rate.

Speaking at an event in Brasilia alongside President Jair Bolsonaro and central bank chief Roberto Campos Neto, as the real slumped to a new all-time low against the dollar, Guedes also said Brazil’s economy will grow by more than 2% this year and beyond. (Reporting by Lisandra Paraguassu and Gabriel Ponte Writing by Jamie McGeever, Editing by Franklin Paul)

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