RIO DE JANEIRO, June 7 (Xinhua) -- Brazilian President Michel Temer on Thursday denied rumors that the country is on the brink of a currency crisis.
Earlier in the day, the Brazilian Real-U.S. dollar exchange rate hit 3.93 reals per dollar. The Real's value has been dropping consistently in the past few months, and the currency accumulated a devaluation of 18.4 percent this year, after having devaluated only 1.99 percent in 2017.
Despite the alarming devaluation rate of the Real, Temer negated concerns in a TV interview aired on Thursday evening.
"There is no risk of a currency crisis in Brazil," Temer said.
According to the president, Brazil has a reserve of 380 billion dollars and its debt is much lower than this amount. Temer also said that Brazil is keeping fiscal adjustments under control and continues to receive foreign investments.
In addition, Temer said that the Brazilian Real is not the only currency that has suffered devaluation against the dollar in recent months. Other countries in Latin America, such as those in Argentina and Mexico, had the same problems, he said.
