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Weaker real should not be allowed to stoke inflation -Tombini
December 11, 2012 / 3:30 PM / 5 years ago

Weaker real should not be allowed to stoke inflation -Tombini

BRASILIA, Dec 11 (Reuters) - The recent weakening of Brazil’s currency should not be allowed to contribute to inflation, central bank president Alexandre Tombini told lawmakers at a hearing on Tuesday.

Brazil’s currency, the real, has weakened 10 percent against the U.S. dollar in the year to date.

“The exchange rate is more depreciated than it was, but what is important is not the nominal rate but the real rate, which makes a difference in competitiveness,” Tombini said. “It is important that any movement is maintained with inflation under control.”

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