Exclusive: Brazil's Silva would end fx intervention program - adviser

Reuters News
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Posted: Sep 11, 2014 3:39 PM

By Alonso Soto

BRASILIA (Reuters) - Brazilian presidential candidate Marina Silva would, if elected, end a central bank currency intervention program that has kept the local currency artificially strong for more than a year, one of her senior economic advisers told Reuters on Thursday.

Alexandre Rands, who runs an economics consultancy and helped draft Silva's economic plan, said she would end "a policy that has kept the real stronger for more than a year."

"That does not mean that you cannot carry out small, temporary actions to eliminate volatility," he added.

Since last August, Brazil's central bank has intervened daily in the foreign exchange market by selling currency swaps, derivatives designed to support the real.

Silva, a popular environmentalist, is tied with President Dilma Rousseff in an expected runoff vote in October, according to recent polls.

(Reporting by Alonso Soto; Editing by Diane Craft)