LONDON, Sept 26 (Reuters) - The strengthening of Brazil’s currency this year is a reflection of ongoing reforms, economic recovery as well as robust foreign investment flows, finance minister Henrique Meirelles said on Tuesday.
Meirelles also told reporters that authorities saw no reason for intervention in a free-floating exchange rate regime.
“The current level (of the real) reflects the economic recovery, the fact that reforms are being approved and a very important factor... that (foreign direct investment) is very strong. Historically, the (amount) of FDI is comparable to the current acocunt deficits,” Meirelles said during an event organised by Brazilian bank Itau in London.
The real has risen around 4 percent against the dollar this year.
“The level of foreign debt went down, reserves are very high...Investors are more and more confident in Brazil and the currency,” Meirelles said.
Asked if the exchange rate was a concern he said:
“We have a free-floating regime that’s working well and we should preserve that.” (Reporting by Karin Strohecker and Sujata Rao)