Roberto Campos Neto, the president of the Central Bank of Brazil, said that the bank will announce, on Wednesday (29.May.2019), a bill to simplify the currency exchange in Brazil.
The idea is to create a 100% convertible currency capable of becoming a reference for the region. According to Campos Neto, there is a lot of demand for accounts in reais (the Brazilian currency) in small countries that do business in Brazil. Brazil has this vocation. If we reach maturity, with controlled inflation, low interest, we will have scope to expand the currency. But for this, it is important to have a convertible currency.
Asked by the site Poder360 if Brazil was headed towards a great depression, Campos Neto replied: "we do not work with this scenario". He thinks that this is unlikely, given the pent-up demand in Brazil.
However, according to Bloomberg, Brazil's GDP in the first quarter should show a decline in the quarterly comparison. This decline could interrupt the series of eight consecutive quarters of advancement.
