Brazil's real 20 pct above 'neutral level'-official
NEW YORK, Nov 4 (Reuters) - The Brazilian real is around 20 percent above a "neutral level" that would neither stimulate nor hinder economic growth, Secretary of Economic Policy Nelson Barbosa said on Wednesday.
His comments accompany investor concerns Brazil may adopt extra measures to curb the currency's appreciation following a 2 percent financial tax on foreign inflows imposed last month.
The real's neutral currency level currently ranges between 2.10 and 2.12 reais per U.S. dollar, Barbosa told reporters in an event organized by the Brazilian-American Chamber of Commerce in New York.
He stressed that the real level varies according to commodity prices and is not a target for the government, which remains committed to a floating exchange-rate regime.
The real on Wednesday traded around 1.72 per dollar, near 14-month highs, despite the tax on foreign inflows.
Brazil's Finance Minister Guido Mantega said last month the government was considering additional measures to contain the rapid strengthening of the real.
(Reporting by Walter Brandimarte; Editing by Andrew Hay)
© Thomson Reuters 2009 All rights reserved
Dubai Debt Fears
Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets. Full Article | Slideshow
