* Brazil's stimulus measures part of "permanent" policy
* Treasury secretary indicates exchange rate at good level
By Danielle Fonseca
SAO PAULO, Dec 11 Brazil will keep stimulating
its economy next year but the government believes the exchange
rate has already achieved a more "realistic" level to support
domestic industry, Treasury Secretary Arno Augustin said on
Augustin did not specify which stimulus measures he was
referring to but said the government intends to take steps to
boost growth on a "permanent" basis.
President Dilma Rousseff's government has offered several
tax breaks and credit incentives to spur investments and revive
economic growth after a near-recession in the past year. Some of
the measures, such as a tax reduction on automobiles, are due to
expire at the end of this year.
"Stimulus measures will continue this and next year, this is
something permanent," Augustin said at an event organized by
Bloomberg in Sao Paulo.
The Brazilian government has also acted in the past few
months to weaken the currency, in an attempt to stimulate
exports. But the real is at a more "realistic" level now
after being excessively strong in the past, Augustin added.
The real has slipped about 10 percent since the beginning of
the year after several market interventions by the central bank
and a sharp cut in Brazil's base interest rate, the Selic. It
traded at 2.0755 reais per U.S. dollar on Tuesday.
Augustin reiterated that the government doesn't have a
target for the exchange rate. He said the central bank's recent
interventions were aimed at curbing undesired volatility.
"There's no change to the currency strategy," he said. "The
government aims to curb volatility in the exchange rate, and the
central bank has been doing great work on that."